Planet Fitness’ revenues fell 77.9% in the second quarter compared to the same period in 2019 and executives expect revenues for the year to be halved as result of widespread gym shutdowns due to the pandemic.
The gym chain, which is a mix of franchise and corporate-owned locations, had total second quarter revenues of $40.2 million, a drop from $181.7 million a year ago. Net income fell 180.3% to a loss of $32 million compared to a gain of $39.8 million in 2019.
Planet Fitness CEO Chris Rondeau said on a conference call after the earnings release that while his company took a hit because of COVID-19, it’s looking at a post-pandemic gym landscape that could have less competition with the closure of independent gyms, and 24 Hour Fitness and Gold’s Gym emerge from 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.”
Roughly a quarter of Planet Fitness’ 2,059 locations remain closed because of the COVID-19. In a statement included with the earnings release, the company said all of its locations were closed at some point of the second quarter because of the pandemic.
“While the near-term operating environment is likely to remain volatile and negatively affect our near-term revenue and profitability, I am confident that Planet Fitness is well positioned to capitalize on the industry consolidation that we believe will emerge over the next several years and increased focus on health and wellness,” Rondeau said in a statement.