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In reporting Q4 earnings, Planet Fitness announced it’s made major gains with one age demographic in particular: Generation Z.
The generation — which encompasses people born between 1997 and 2012 — is signing up for gym memberships at higher rates than any other age group, CEO Chris Rondeau told CNBC.
The reason? The pandemic. Gen Z’ers joined Planet Fitness in order to gain an option to exercise when COVID-19 forced shutdowns of in-school sports and recreational leagues.
And so far in 2022, the trend hasn’t slowed, Rondeau said, despite widespread reopenings.
Bouncing Back
Planet Fitness has been working to combat losses suffered during the pandemic — and third-quarter reports suggested a major bounceback.
While Q4 earnings may not be quite as flashy, they suggest the company continues to move forward.
- The fitness company reported a 37.3% increase in total revenue from the same period last year to $183.6 million.
- Net income attributable to Planet Fitness, Inc. was $5.7 million, a decrease from $8.7 million the previous year.
- Planet Fitness has 15.6 million members now — more than it had pre-COVID — and 62.5% have upgraded to Black Card status, the gym’s $22.99 premium tier, compared to its entry-level $10 membership.
The news of the rise in membership comes on the heels of the company’s acquisition of 114 locations of Sunshine Fitness for $800 million, which was announced in January.
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