A consumer on a treadmill at a Planet Health fitness center.
Supply: Getty Photos
Planet Fitness is seeing extra pre-teens and teenagers join their first fitness center memberships through the coronavirus pandemic, serving to to gasoline the corporate’s total progress.
When the fitness center operator reported its fourth-quarter outcomes on Thursday, it mentioned Gen Z — which represents individuals born between 1997 and 2012 — represented the quickest rising demographic group for Planet Health memberships in 2021.
Chief Govt Chris Rondeau mentioned in an interview that many youthful customers flocked to its health facilities final 12 months as faculty actions and sports activities leagues had been quickly paused. In some cities, malls and film theaters had been nonetheless shut down. The development has continued into 2022, he mentioned, regardless of many group actions resuming and youngsters heading again to high school.
“This previous September, when faculty sports activities had been in play and recreation facilities had been again open, that did not drop off,” he mentioned, including that Gen Z places further emphasis on staying energetic and sustaining their psychological well being. “They proceed to affix, fairly a bit above pre-Covid ranges.”
Planet Health memberships begin at a month-to-month charge of $10, making it a way more inexpensive possibility for customers in contrast with higher-end chains like Life Time Fitness and Equinox.
In response to Rondeau, about 62.5% of members have upgraded to Black Card, a membership possibility priced at $22.99 a month that provides prospects entry to any of its greater than 2,000 U.S. gyms, together with different perks like tanning beds and visitor passes. He mentioned penetration of Black Card members is rising as the corporate opens extra places.
On the finish of January, Planet Health counted 15.6 million members, which it mentioned surpasses its pre-pandemic peak.
Web revenue attributable to Planet Health shareholders for the three-month interval ended Dec. 31 fell to $5.7 million, or 7 cents per share, in contrast with $8.7 million, or 11 cents a share, a 12 months earlier. Excluding one-time objects, it earned 26 cents a share, according to analysts’ estimates for 26 cents, based mostly on Refinitiv information.
Whole gross sales grew 37.3% to $183.6 million from $133.8 million a 12 months earlier. That topped estimates for $178.8 million.
Planet Health shares had been falling round 6% in premarket buying and selling Thursday, amid a broader market selloff. As of Wednesday’s market shut, shares are down about 1% 12 months thus far.
Discover the total monetary press launch from Planet Health here.