Following the temporary closure of all Planet Fitness stores in mid-March in response to the pandemic, 1,477 of our stores are reopened and operating to-date
– Chris Rondeau
Planet Fitness' share price on the New York Stock Exchange has remained steady at between US$49 and US$52 as the markets react well to the posting of quarterly earnings, despite the gym chain reporting big drops in both revenue and profit during Q2 2020.
Like other fitness operators, the company has been hit hard by the pandemic and the resulting lockdowns.
Forced closures led to total revenues during the second quarter of 2020 falling to US$40.2m – a drop of 77.9 per cent on the previous year's total of US$181.66.
This led the firm to report operating losses of US$22.72m for Q2 – compared to operating income of US$65.27m during the same period in 2019.
Total losses were reported at US$29.2m for Planet Fitness and net losses at US$31.99m for the wider business, including operations where the company does not have a controlling interest.
Despite the results, share prices only moved 3 per cent. Share prices peaked in late February 2020 at around US$88.
Earnings per share came in at 16¢ – lower than the 32¢ that had been expected, but the revenues of US$40.2 were higher than the US$38.1 that had been forecast.
In spite of the challenging trading environment, 21 new Planet Fitness sites opened during the period, bringing the number of locations to 2,059 as of 30 June – with nearly 1,500 of those currently open.
Speaking about the results, CEO, Chris Rondeau said: “I'm proud of how the entire Planet Fitness system is managing through this challenging time, especially the passion and commitment to take care of our members demonstrated by our store team members, headquarters employees and franchisees.
"While the near-term operating environment is likely to remain volatile and negatively affect revenue and profitability, I'm confident Planet Fitness is well-positioned to capitalise on the industry consolidation we believe will happen over the next several years and also the increased focus on health and wellness."
Founded in 1992, Planet Fitness currently has 2,059 gyms in the US, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico and Australia.