The fitness industry is in flux. As exercise seekers choose between working out at home or in person, gyms and equipment makers are along for the ride.
The headline of recent weeks, Peloton’s pandemic bubble popped on a less-than-stellar earnings report. In the fallout, the company shed more than $10B in market cap. Meanwhile, Planet Fitness beat earnings and revenue estimates, as memberships approached pre-pandemic levels.
- Revenue grew 60% YoY to $40.9M.
- North American system-wide sales were up 93% YoY to $192.4M.
- Brands in its portfolio opened 68 new studios, reaching 1,907 total studios.
- It increased its fiscal 2021 outlook, raising expectations for sales, revenue, and new studio openings.
On the news, Xponential CEO Anthony Geisler added:
“Brick-and-mortar gyms are back… In some ways, you can say that this past quarter was the grand reopening of the global fitness industry.”
Inside the call. A holding company of boutique fitness brands, Xponential owns 10 concepts, including Club Pilates, Pure Barre, CycleBar, Row House, StretchLab, AKT, YogaSix, Rumble, STRIDE, and BFT.
On its latest earnings call, the company laid out its strategy for future growth, including:
Digital. Boosting its at-home offering, known as “GO,” Xponential launched and upgraded its production studio. The company has started bundling the digital/studio membership, granting members access to a library of 2,700 on-demand workouts.
All-access. A passport to participating studios, Xponential has been testing an XPASS. Reaching 1,400 studios across 48 US states, 80% of franchisees have adopted the pass. Next, the company aims to roll out XPASS across North America.
International. Going global, Xponential has over 1,000 studios open or obligated to open around the world.
Partnerships. Xponential Fitness is set to open boutique studios inside LA Fitness and City Sports Club locations, with a minimum commitment of 350 franchise locations over five years.
Punchline: While Planet Fitness and Xponential bode well for gyms, at-home fitness is here to stay. With more options than ever, the competition for the fitness consumer is just beginning, and greater exposure may be a key to winning.