Fitness centers strike back: Life Time, Planet Fitness take aim at Peloton
It's the revenge of the gyms.
What’s happening: Fitness chains like Life Time and Planet Fitness reported sharp increases in revenue and users this week at the same time as Peloton’s slump deepens.
- It’s a dramatic reversal of their fortunes from the early going of the pandemic, when fitness facilities were shuttered and stay-at-home workout stocks were flourishing.
The big picture: Exercisers are growing increasingly comfortable with hitting the gym despite lingering cases of COVID.
- Planet Fitness' total revenue soared 67% in its first quarter, compared with a year earlier, and the chain added 37 new locations during the period for a total of 2,291.
- Life Time's comparable sales soared 50% in the first quarter, versus a year earlier, as memberships rose 24%. The chain plans to add to its 160 locations with another 12 in 2022 and in 2023.
- “The energy is coming back,” Life Time President Tom Bergmann tells Axios.
Yes, but: The fitness chains have not been immune to broader market turmoil in 2022. Life Time’s stock is down about 27% this year, while Planet Fitness shares are down about 23%.
- But both are outpacing Peloton’s 63% plunge as concerns mount about the stationary bicycling company’s growth prospects.
Our thought bubble: Many Americans are rediscovering the joy of physically working out alongside others.
- “You can only sit inside your home and do a workout for so long,” Bergmann says.