Planet Fitness saw its quarterly revenue drop 77.9% year-over-year as it became the latest company in the fitness industry marred by the COVID-19 pandemic. It lost $32 million in its 2020 fiscal second quarter, compared to bringing in a net income of $39.8 million in 2019.
Roughly a quarter of Planet Fitness’s 2,059 locations remain closed because of the COVID-19 pandemic. The company said all of its locations were closed at some point of the second quarter because of the pandemic.
Planet Fitness CEO Chris Rondeau said on a conference call that while his company took a hit, it’s looking at a post-pandemic gym landscape that could have less competition. Independent gyms have been closing down in droves and chains like 24 Hour Fitness and Gold’s Gym will emerge from bankruptcy reorganization with fewer locations.
“There is going to be a six- or 12-month time period where gyms will look to reopen or not reopen,” Rondeau said. “There is some opportunity there for us.” Planet Fitness shares are down 32% this year, despite reaching an all-time high in February.
In a letter to Congress, the International Health, Racquet & Sportsclub Association outlined how COVID-19 has impacted the fitness industry:
— $7 billion in projected revenue loss through July 1.
— 25% of gyms expected to close for good this year.
— 489,000 fitness employees unable to work.