By Dean Seal
Planet Fitness is guiding for another 10% revenue jump in 2025 after adding a million new members last year, though its profit outlook weighed on shares.
The fitness center chain said Tuesday that it expects revenue to rise about 10% from $1.18 billion last year. This would be the second 10% annual revenue gain in a row and bring the 2025 top line to around $1.3 billion. Analysts surveyed by Factset had been projecting $1.28 billion.
Adjusted earnings, which strip out one-time items, are expected to climb 11% to 12% from $2.59 a share in 2024. That would be about $2.87 to $2.90 a share, below current analyst targets for $2.94 a share, according to FactSet.
Shares slid 7.9% to $91.40 in early trading. The stock closed at $63.71 this time a year ago.
Jefferies analysts were unfazed by the outlook, saying in a research note that it looks beatable given strong 2025 membership growth and market share gains.
The Hampton, N.H., company said it picked up about 1 million net new members in 2024, finishing the year with 19.7 million total despite having raised its basic membership price to $15 a month from its decades-old $10 price point.
The gym operator has been taking other steps to lure customers, including changing its equipment mix to focus more on strength, and working to appease franchisees by easing remodeling schedules, among other things.
For the last three months of 2024, Planet Fitness said total revenue rose 19% to $340.5 million, topping analyst projections for $325 million, according to FactSet.
Systemwide same-club sales, which adjust for location openings and closings, were up 5.5%, above analyst targets for 5% growth.
The Hampton, N.H., company said royalty revenue was up thanks to higher sales at its franchisees and new franchisee openings. Corporate-owned locations also logged a jump in same-club sales, as well as higher fee revenue. Equipment sales to franchisees surged almost 50%, with gains among existing franchisees and new clubs.
Planet Fitness posted a fourth-quarter profit of $47.1 million, or 56 cents a share, up from $35.3 million, or 41 cents a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were 70 cents a share. Analysts polled by FactSet had been expecting 62 cents a share.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
February 25, 2025 10:24 ET (15:24 GMT)
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