Planet Fitness, Inc. (NYSE:PLNT)
Increased memberships, strategic alliances, and overseas growth have benefited Planet Fitness, Inc. (NYSE:PLNT). However, inflation and the COVID outbreak are still problems. The industry has dropped by 41.7% over the past year, whereas the company’s drop is only 13.6%. Let’s look into this in greater detail.
Planet Fitness, Inc. (NYSE:PLNT) has emphasized strategic alliances and global expansions to increase its visibility and market share. The business joined forces with iFit, a pioneer in streaming fitness programs for the home. As part of the collaboration, the firm launched a set of new low- or no-equipment routines available to everyone on the Planet Fitness app.
This Zacks Rank #3 (Hold) firm is improving due to recent hires. A total of 16.5 million people were members as of the end of the second quarter of 2022 after the company gained 300,000. The company’s shop base grew by 34 during the second quarter, bringing the total to over 2,300. More than 330 additional stores have been added to the company’s network since the year 2020 began. The company anticipates that the current trends of regularized joining and seasonality will hold true for the remainder of 2022.
Planet Fitness, Inc. (NYSE:PLNT) is rapidly expanding to become a leading fitness facility franchisor and operator in the United States. The company has launched a joint venture with one of its top U.S. developers and a significant Mexican retail services provider to increase its presence in Mexico. The pact calls for the opening of 80 outlets within the following five years. In accordance with the terms of the development agreement, the company launched a store in Mexico during the first quarter of 2022. At the same time, the corporation is putting a lot of effort into growing its presence in international markets. That’s why they’re saying they’re going to open a Planet Fitness in New Zealand: to serve the local population. It plans to launch 25 stores as part of this plan over several years.
Planet Fitness, Inc. (NYSE:PLNT) continues to be bullish about the possibility of opening 4,000 or more stores in the United States due to the growth potential afforded by shifting market dynamics and tailwinds connected to health and wellness. There were over 16.2 million customers and 2,291 locations as of March 31, 2022, in the United States, the District of Columbia, Puerto Rico, Canada, Panama, Mexico, and Australia.
The coronavirus pandemic has had a significant impact on a company’s operations. The company said system-wide store sales were 6% lower than before COVID in the second quarter. The pandemic in China has caused a scarcity of HVAC parts, which negatively impacts business. But worries about a recession and rising prices continue to act as a significant drag.
Featured Image – Megapixl © Samael333