Planet Fitness IncPLNT
▼ NegativeCapitalrelevance
Same-store sales growth slowed sharply and net member additions were muted, despite beating revenue and EPS estimates.
Impact on stocks 1
Consumer Discretionary
Planet Fitness IncPlanet Fitness reported second-quarter revenue and profit above Wall Street expectations, but shares fell as same-store sales growth slowed sharply and net new member additions were muted. Revenue rose 7.1% year over year to $365.2 million, beating analyst estimates of $356.6 million, while adjusted EPS of $0.88 topped the $0.85 consensus. Same-store sales increased just 1.7% compared with 8.2% a year earlier, and management cited a transition period as new marketing campaigns and pricing strategies roll out. During the earnings call, analysts pressed CEO Colleen Keating on regional pricing tests, churn differences between Classic and Black Card members, the rationale for the marketing shift, weekly billing plans, and the status of Black Card pricing changes. Keating said various pricing tiers are being tested, churn is consistent across tiers, monthly billing remains standard, and a broad Black Card price increase is paused to prioritize net member growth.
Planet Fitness IncSame-store sales growth slowed sharply and net member additions were muted, despite beating revenue and EPS estimates.