Q4 2023 Earnings Summary
Reported on Feb 18, 2025 (Before Market Open)
Pre-Earnings Price$65.86Last close (Feb 21, 2024)
Post-Earnings Price$64.32Open (Feb 22, 2024)
Price Change
$-1.54(-2.34%)
- Strong growth in Gen Z membership, which now makes up more than 25% of members , provides long-term potential. Although Gen Z's initial Black Card penetration is lower, it increases to about 60% as they age into their 20s, aligning with the average and enhancing lifetime value.
- Pricing strategies, such as narrowing the price gap between the White Card and Black Card memberships, may help increase Black Card penetration, potentially boosting revenue per member.
- The international expansion into Spain offers significant growth opportunity, with the potential for over 300 Planet Fitness locations in the market , expanding their global footprint beyond existing markets.
- The company lowered its system-wide same-store sales growth guidance to between 5% and 6% for 2024, down from earlier indications of high single digits.
- An increasing proportion of younger Gen Z members, who have lower Black Card penetration rates, could reduce average revenue per member.
- Real estate challenges, with 98% of retail space being occupied, are impacting new store development and could slow down growth.