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BusinessPlanet Fitness CEO says gym membership has almost reached its pre-Covid peak

Planet Fitness CEO says gym membership has almost reached its pre-Covid peak

Membership at Planet Fitness gyms has practically returned to its pre-pandemic peak, CEO Chris Rondeau advised CNBC on Thursday, illustrating individuals’s eagerness to train outdoors of their house.

In an interview on “Mad Money,” Rondeau mentioned the gym chain now has 15 million members, describing that determine as “unbelievable” after places had been shuttered for months early through the Covid disaster after which even after they reopened, many individuals had been hesitant to return instantly.

“Our height was 15.5 [million members]. We’re 97% all the way recaptured back to where we were pre-Covid,” Rondeau mentioned.

Rondeau’s feedback got here after Planet Fitness shares surged 11.7% Thursday to shut at $92.25, hitting a document excessive through the session. Investors cheered the corporate’s sturdy third-quarter monetary outcomes, which contained Planet Fitness’ first earnings beat for the reason that fourth quarter of 2019.

Total income of $154.3 million was up 46.4% in contrast with the identical interval final yr, when the pandemic weighed closely. Planet Fitness additionally raised full-year steering on various metrics, together with income and new retailer openings.

“We saw the highest third quarter net member growth in company history,” Rondeau mentioned. “People are choosing bricks and mortar. They’re coming back faster than we’ve ever seen. They’re rejoining our clubs faster than we’ve ever seen. The Gen Z’s are joining faster than we’ve ever seen. All the winds are blowing the right direction, and the sails are wide open.”

After Thursday’s closing bell, Peloton posted a wider-than-expected loss in its fiscal first quarter, together with income that fell wanting Wall Street’s estimates. Shares of the health bike maker, which benefited mightily through the pandemic, fell greater than 25% in after-hours buying and selling.

Peloton’s outcomes come in opposition to the backdrop of individuals returning to gyms like Planet Fitness.

“I never waivered. Me and my team, the franchisees, we knew once we got on the other side of this, people are going to gravitate back [to gyms],” he mentioned. He added, “We’re definitely stronger now on the other side of this, and our moat is even that much wider.”


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