Randal Konik

Randal Konik asked for perspective on how Planet Fitness's 2026 guidance shapes the revenue, unit expansion, and EBITDA dollar growth for 2027 and 2028 within the reiterated three-year growth algorithm, and also inquired about granular details regarding January's performance.

Answer

CFO Jay Stasz explained that 2026 represents the lowest growth year in the three-year algorithm due to the reequipment cycle and California club sales, which impacted top-line and EBITDA by 300 and 200 basis points, respectively. He confirmed the company expects to return to the laid-out targets in 2027 and 2028, with a step-up in growth. Stasz also detailed January's join trends, noting a significant impact from late-January storms across 2,000 clubs, followed by a rebound and healthy February join rates. He mentioned a slight, now normalized, elevation in January attrition.

Randal Konik asked about the percentage of clubs featuring the new layout with more strength equipment and inquired about performance differences in those clubs regarding membership, Black Card penetration, and attrition. He also requested an update on new Black Card amenities like red light therapy and cold plunge.

Answer

CEO Colleen Keating reported that by the end of the year, over 70% of clubs will have an optimized floor plan with a balanced 50/50 mix of cardio and strength equipment. She added that new Black Card amenities, including red light therapy and spray tanning, are currently in the pilot phase, and it is too early to determine which will be rolled out widely.

Randal Konik asked for an update on international development beyond Spain and how to think about that part of the model going forward. He also re-asked about the Black Card pricing strategy, its cadence, and the dynamic of the classic card price increase encouraging Black Card sign-ups.

Answer

CEO Colleen Keating reported that clubs in Spain are performing very well, with ramps equal to or better than domestic clubs, and that the brand is also resonating strongly in Australia. She reiterated that a decision on Black Card pricing will wait until after the classic card price increase anniversary. She confirmed the narrowed price gap has driven favorable Black Card penetration and that the company has historically taken price on the Black Card more frequently, a practice that will likely continue periodically.

Randal Konik asked for long-term perspective on international unit growth, particularly in Europe following the entry into Spain, and questioned the current appetite of U.S. franchisees to accelerate new club builds.

Answer

CEO Colleen Keating stated that the company is pleased with its five clubs in Spain and will take a thoughtful approach to international expansion, aiming for one to two new markets a year while transitioning Spain to a franchise model. Domestically, she noted that while significant progress has been made on improving franchisee IRRs through cost reductions and the price hike, the company will never stop seeking enhancements. She reiterated the goal of returning to 200 annual openings in a 'few years'.

Randal Konik asked if the company had considered raising the Classic Card price to $15 for all existing members, not just new ones. He also sought more detail on international strategy, asking why specific markets like Mexico, Spain, and Australia were chosen and which might be prioritized for faster growth.

Answer

CFO Tom Fitzgerald stated that the company's policy is to not raise prices on existing loyal members, as their strategy is focused on volume growth. On international expansion, he explained the model translates well due to its simplicity and value, often bringing new consumers into fitness. He identified Mexico, Canada, Australia, and Spain as key markets with significant potential but did not single one out for accelerated growth over others.

Randal Konik from Jefferies & Company Inc. asked about the potential headroom for fashion AUR growth, considering the expansion of LGD fashion pieces. He also inquired about the expected timeline for other banners like Blue Nile and James Allen to stop being a drag on overall performance and questioned if the current CapEx guidance represents a normalized run rate.

Answer

CEO & Director J.K. Symancyk stated there is still runway for fashion AUR growth, as LGD penetration is only at 14%. Chief Operating & Financial Officer Joan Hilson added that AUR is expected to continue growing due to gold prices, LGD penetration, and lower promotions. Regarding other banners, Symancyk detailed individual strategies for Blue Nile, James Allen, and others, aiming for improvement but emphasizing the focus on the core three brands. Hilson indicated that future CapEx would follow the brand strategy and is not expected to be markedly different from the current range.

Randal Konik of Jefferies & Company Inc. requested an update on shrink mitigation strategies and the timing of inventory counts, and also asked about sourcing strategies for 2026 in light of the current acceleration of receipts.

Answer

Interim CFO & COO Kenneth Bull stated that physical inventory counts are currently underway, with results to be shared on the Q3 call. CEO Winnie Park added that the sourcing strategy for 2026 will continue to focus on agility and diversification, including expanding the U.S. vendor base, to navigate the volatile trade environment.

Randal Konik from Jefferies & Company Inc. asked for the outlook on B2B versus DTC growth leadership into the next fiscal year and requested more detail on closed-toe category performance beyond the popular Boston style.

Answer

CFO Ivica Krolo reiterated that the trend towards in-person shopping is driving B2B strength but did not provide specific guidance for FY2026. He highlighted that the closed-toe category's share increased by 400 basis points and that non-Boston closed-toe styles are growing at the same rate as the Boston, indicating broad strength in the category.

Randal Konik from Jefferies requested details on shelf-space gains with wholesale partners in 2024 and 2025, the expected split between pricing and unit growth, and an update on the strategic build-out of the APAC business.

Answer

President Americas David Kahan confirmed that over 90% of wholesale growth comes from existing doors, driven by strong sell-through and expansion beyond sandals into closed-toe shoes. VP, Global Finance Alexander Hoff reiterated the outlook for 2/3 unit growth and 1/3 ASP growth. CSO Klaus Baumann noted the APAC expansion uses a mixed model of partner-run mono-brand stores and owned D2C stores, with a focus on premium execution and brand building.

Randal Konik sought more detail on the drivers within the closed-toe category, its potential to reach 40-50% of the mix, the ASP difference versus sandals, and clarification on the B2B versus B2C growth outlook.

Answer

David Kahan, President of the Americas, explained that closed-toe growth is broad, driven by various clog styles in the U.S. and boots in Europe, all with higher ASPs than sandals. Regarding channel growth, management reiterated a 'balanced' growth plan. Megan Kulick added that with B2C at 40% of the business, growth will come from both channels, with new retail stores contributing more to B2C in the second half of the year.

Randal Konik inquired about the specific changes to the 'grand opening playbook' that are improving the ramp-up of new 2025 centers and asked for an outlook on the pace of future center closures.

Answer

Chairman & CEO Chris Morris explained that the improved ramps are due to a refined 'grand opening playbook' with more precise operational and marketing tactics, building on foundational work from the previous management team. Regarding closures, Morris stated that current initiatives to drive traffic and improve franchisee profitability are designed to strengthen the entire network's health, which should minimize future closures and support the goal of returning to net unit growth in 2026.

In a follow-up, Randal Konik asked for a long-term perspective on the total addressable market (TAM) for stores and if the strategy for new site selection is changing.

Answer

CEO David Berg reaffirmed his confidence in the business model and the robust TAM in the U.S. He highlighted the company's dominant leadership position in a fragmented industry and the significant 'white space' for continued thoughtful and reliable growth. He also pointed to the laser hair removal pilot as a potential future growth driver.

Randal Konik inquired about the deceleration in same-store sales from Q1 to Q2, the specifics of the Club Pilates pricing strategy, the brands contributing most to the franchise opening backlog, and the expected timeline for the studio closure rate to normalize.

Answer

CFO John Meloun attributed the same-store sales slowdown to a moderation at Club Pilates and a greater negative comp at StretchLab. He noted that the divested Rumble and CycleBar brands were significant contributors to the delinquent backlog. He projected the closure rate would trend down towards 5% and normalize in 2026. President, North America John Kawaja confirmed the intent to lean into pricing, cancellation fees, and dynamic pricing at Club Pilates due to high studio productivity.

Randal Konik asked for a high-level summary of Xponential's transformation strategy beyond the numbers, the composition of revised studio openings, and which brands management has the most conviction in.

Answer

CEO Mark King described the company's transformation as a shift from an aggressive sales focus to building a foundation of operational efficiency, which is impacting short-term growth. CFO John Meloun added that 2025 is a 'stabilization' year before a return to growth. King expressed high conviction in YogaSix and Pure Barre, while noting StretchLab is a focus for improvement. Meloun confirmed Club Pilates will constitute over half of new openings.

Randal Konik requested clarification on studio closures, the status of the real estate portfolio 'cleansing,' and the criteria for deciding which brands to keep under the 'less is more' strategy.

Answer

CEO Mark King stated the company is taking a more conservative approach to closing underperforming studios to improve system health. CFO John Meloun noted that of the lease liabilities, $30.3 million have been settled with about $15 million remaining, which he expects to address in the first half of 2025. King added that the primary hurdle for retaining a brand is achieving 20-25% franchisee EBITDA margins at the studio level, as capital will be focused on fewer, more profitable brands.

Randal Konik inquired about the criteria and potential timing for divesting underperforming brands and asked for more detail on Japan's significance for international expansion.

Answer

CEO Mark King clarified there are no short-term divestiture plans, as the focus for 2025 is on investing in all brands to build momentum, with franchisee profitability being the key metric. Regarding international growth, King highlighted the success in Australia and Japan as models for expansion, emphasizing the importance of large potential markets and strong, well-capitalized master franchise partners.

Randal Konik from Jefferies & Company Inc. asked about the recent strategic talent acquisitions, questioning what new capabilities these executives bring to the organization. He followed up by asking how the successful F1 movie sponsorship might influence future marketing strategies, particularly regarding the co-branding of the Shark and Ninja brands.

Answer

CEO Mark Barrocas detailed that the new hires are crucial for managing increased scale and complexity, citing additions to lead software/electronics integration, the innovation pipeline, and global growth initiatives. Regarding marketing, Barrocas confirmed the F1 movie's success in building brand awareness. He described the upcoming launch of a unified SharkNinja.com website as the next major step in this evolution, which will facilitate cross-selling and enhance consumer loyalty programs. CFO Patrick Reagan added that the unified site will significantly improve the consumer experience.

Randal Konik asked about the drivers behind the accelerated consumer discovery of new products and for more detail on European shelf space expansion.

Answer

CEO Mark Adam Barrocas explained that new product discovery is accelerated by a large existing customer email list and pre-launch seeding with influencers, which creates significant day-one demand. Regarding Europe, he noted that strengthening CEO-level relationships with major retailers in Germany, France, and the Nordics has led to increased shelf space commitments for the upcoming holiday season, supported by recent strategic talent acquisitions to scale the business globally.

Randal Konik inquired about the long-term strategy for the direct-to-consumer (D2C) channel, its growing importance as seen with the CryoGlow launch, and any plans to enhance the D2C website and overall experience.

Answer

CEO Mark Adam Barrocas stated that D2C is expected to continue growing faster than the overall business. While maintaining a balanced omnichannel strategy, SharkNinja uses D2C for initial product launches to control distribution and gather immediate consumer feedback, as exemplified by the Ninja Swirl launch which had a 90,000-person waitlist. He highlighted plans to make D2C a unique destination with exclusive products and a major platform upgrade to Salesforce in Q3 2025 to enhance the customer experience.

Randal Konik inquired about the evolution of channel partnerships with key retailers like Walmart, Costco, and Amazon, and requested an update on distribution progress within the beauty, grocery, and sporting goods channels.

Answer

CEO Mark Barrocas confirmed that strong innovation is driving increased shelf space and placement with major retail partners. He noted that for new channels, beauty products will see expanded placement in retailers like Ulta and Sephora in 2025, the Ninja SLUSHi is opening doors in grocery, and the company is positioned for a stronger 2025 in sporting goods after missing the main season with its cooler products this year.

Randal Konik of Jefferies & Company Inc. requested more detail on the 'sell-through outpacing sell-in' dynamic, a qualitative outlook on long-term gross margins, and how the innovation process has evolved since the IPO.

Answer

CFO Mike McMullen explained that in the U.S., the trend indicates healthy channel inventory, while internationally it reflects strong consumer demand despite cautious wholesale ordering. On margins, he noted tariff uncertainty but highlighted opportunities from cost efficiencies and a favorable sales mix. CEO Matt Reintjes detailed the innovation evolution from one general team at IPO to three focused teams today, supported by a new Thailand innovation center and a sophisticated global supply chain.

Randal Konik inquired about the cadence of new product introductions for 2025 versus 2024, consumer response to new items, and the specific portion of the $100 million tariff impact attributable to China.

Answer

Executive Matthew Reintjes confirmed over 30 new products for 2025, up from 24 in the prior year, and expects this accelerated cadence to continue into 2026, driven by innovation in hard coolers and bags. CFO Michael McMullen clarified that the tariff impact begins in Q2, and approximately 90% of the projected $100 million impact is specific to China.

Randal Konik requested perspective on the pace of innovation over the next one to two years, the current scale of the Bags category, and the key drivers behind the mid-teens international growth forecast for 2025, including specific country opportunities.

Answer

President & CEO Matthew Reintjes indicated the innovation pace would remain consistent with the accelerated tempo of 2024, highlighting upcoming launches in bags, chairs, and coolers. While not sizing the Bags business, he noted its strong growth. EVP & CFO Michael McMullen identified Europe as the fastest-growing international region. Reintjes added color on the significant, early-stage opportunities in the UK, Europe, and the new market entry into Japan.

Randal Konik asked for an update on the status of YETI's international infrastructure, particularly in Europe and Asia, and inquired about the company's future product evolution and innovation strategy.

Answer

CEO Matt Reintjes detailed that Canada and Australia are in 'scale mode,' while Europe is built out but still has investment ahead, with Asia being in the earliest stages. On product, he emphasized a thoughtful, connected ecosystem approach, highlighting the massive global opportunity in premium bags, packs, and luggage as a key future growth area.

Randal Konik of Jefferies & Company Inc. inquired about AKA Brands' long-term distribution model across DTC, retail stores, and wholesale, as well as its long-term sourcing structure.

Answer

CEO Ciaran Long explained that the omnichannel strategy is proving successful, with strong growth in the U.S. and positive results from new Princess Polly stores and the Nordstrom partnership. He noted plans for 8-10 more stores in 2026. Regarding sourcing, Long detailed a rapid diversification away from China over the past nine months, resulting in a more flexible and robust supply chain that, combined with price increases, will offset current tariff impacts.

Requested insights on the current consumer environment and stabilization trends, and asked for the long-term (3-5 year) vision for the company's channel distribution mix across e-commerce, physical stores, and wholesale.

Answer

The company is seeing improving trends in Australia and continued strength in the U.S. While Q1 started with a distracted consumer, trends have improved as spring/summer collections launched. The long-term vision is to be a predominantly direct-to-consumer business, but with meaningful opportunities in both company-owned stores and wholesale partnerships. The strategy is to be wherever the customer is, provided it is brand-enhancing and has the right economics.

Randal Konik asked about increased business visibility, drivers of transaction and basket growth, potential for AUR lifts, and the real estate outlook.

Answer

CEO Mark Walsh noted that significant price gaps provide optionality and that recent strategic investments reflect improved visibility. CFO Michael Maher guided for second-half margins to be closer to last year. COO Jubran Tanious expressed confidence in the new store pipeline, citing strong landlord appetite for the thrift concept.

Randal Konik of Jefferies asked for more detail on the drivers of U.S. strength, including customer behavior and transaction trends, and for clarity on the Canadian market's outlook. He also inquired about specific continuous improvement initiatives.

Answer

Executive Mark Walsh stated that in Canada, strong execution and a modestly better economic environment led to a positive comp, but the company remains cautious. For the U.S., he confirmed solid trends in basket size and transactions continued into Q2. Executive Jubran Tanious highlighted automated book processing (ABP) and various tactical improvements in Central Processing Centers (CPCs) as key continuous improvement efforts.

Randal Konik asked for clarification on the percentage of donations from on-site and GreenDrop sources and for a summary of the actions being taken to mitigate macroeconomic challenges in Canada.

Answer

CFO Michael Maher and Executive Jubran Tanious clarified that on-site and GreenDrop donations combined accounted for just under 80% of supply, up from 78% the prior year, with on-site donation comps remaining positive. Executive Mark Walsh recapped the strategy for Canada, highlighting the five promotional and pricing tests conducted. The most promising was strategic price reductions by category, leading to an investment in new pricing tools that will be rolled out across North America in early 2025.

Randal Konik asked about the drivers behind the sequential acceleration in Unlimited Wash Club (UWC) member growth and sought clarification on the scope of the base membership price increase and the long-term penetration potential for the Titanium tier.

Answer

CEO John Lai attributed the 5% UWC member growth directly to a corresponding 5% increase in retail traffic, as member conversion rates held steady. Lai confirmed the base price increase was rolled out in most markets and would be fully implemented by June. He added that the company is pleased with the stable 23% Titanium mix, which has not been negatively impacted by the base price increase in affected markets.

Randal Konik requested a progress report on the implementation of NIKE's new strategies across its geographies, asking where the company is furthest along and where it has the most work to do, with a particular focus on China.

Answer

President and CEO Elliott Hill stated that the 'Win Now' strategy is being applied globally, with North America, APLA, and EMEA making good progress. Regarding China, he acknowledged that competition has become more aggressive but reaffirmed commitment to the market's long-term potential. CFO Matt Friend added that NIKE took aggressive actions in China during Q3, including marketplace returns and rebates, to clean up inventory and that executing the full turnaround will take time.

Randal Konik requested a progress report on the implementation of NIKE's new strategies across its different geographies, asking where the company is furthest along versus furthest behind.

Answer

CEO Elliott Hill indicated that North America, EMEA, and APLA are making good progress, with newness in performance and sportswear nearly offsetting declines in classic franchises in futures orders. He noted that China presents a greater challenge due to more aggressive competition. CFO Matt Friend added that the company took aggressive cleanup actions in China this quarter (returns, rebates), and it will take more time to reset that market and see momentum improve.

Randal Konik inquired about the outlook for gross margin, specifically the drivers behind increasing full-price sales and the margin potential for the FWRD segment. He also asked for details on international logistics costs and margins relative to the domestic business.

Answer

CFO Jesse Timmermans stated that the company sees continued opportunity for full-price sales growth driven by expanding styles and strong merchandising. For the FWRD segment, he noted inventory is in a good position for margin improvement. Regarding international operations, Timmermans explained that while shipping costs are higher, this is offset by a lower return rate, making the contribution margin comparable to the domestic business.

Asked for more detail on the company's increased use of data, the role of the new Chief Procurement Officer, and the strategy and performance of their season pass programs, including future plans.

Answer

The company is becoming more data-driven by expanding data access to general managers for accountability. The new CPO will focus on managing inflation and leveraging scale for procurement synergies. The season pass program is also data-driven; the fall pass was launched to counter softness, and future plans include expanding the summer pass and creating a combined pass for all business types (bowling, FECs, water parks).

Asked for clarity on Q1/Q2 comp cadence, whether M&A is in the annual guidance, the F&B lift from season pass holders, and what types of location-based entertainment businesses the company would not acquire.

Answer

The FY25 guidance does not include unannounced M&A. The company expects to stay in the low to mid-single-digit comp range throughout the year. The season pass successfully drove attachment in F&B and amusements through built-in discounts and arcade credits, leading to the launch of a new fall pass. The company is not interested in acquiring dining-centric businesses like Pinstripes, preferring assets where F&B is ancillary.

Asked for details on process improvements (especially in F&B), other areas of focus, and the reason for increasing the M&A capital guidance.

Answer

Process improvements include data-driven decision-making, standardizing budgets, and optimizing staffing. A new F&B inventory system and a new website for dynamic pricing are being rolled out. The M&A budget was increased to accelerate investment in the high-potential Lucky Strike acquisition.

Randal Konik from Jefferies & Company, Inc. asked for quantification of the drag from seasonal categories on the Q1 comp and whether the ability to get better pricing on deals is a structural trend that could lift gross margins above 40% long-term.

Answer

CFO Robert Helm estimated that weather and seasonal weakness combined were a headwind of about 150 basis points in Q1. CEO Eric van der Valk confirmed that Ollie's growing scale and direct relationships create a structural pricing advantage, but stated the current focus is on using that power to invest in price and drive market share, rather than pushing margins above the 40% target.