Planet Fitness Recovering From Pandemic, Eyes Expansion

    • Planet Fitness posted a second-quarter profit after weathering pandemic-related losses in the same period last year.
    • The company announced a deal to expand in Mexico.

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Few companies had it worse than Planet Fitness during the pandemic, but now the gym chain is back in the black.

The New Hampshire-based company posted second-quarter revenues of $137.3 million on Monday, 241.1% above the same period last year, when many of its locations were closed due to COVID-19.

  • Planet Fitness profited $15 million in Q2, compared to a $32 million loss a year prior.
  • The company opened 24 new locations, bringing its total to 2,170 as of June 30.
  • Revenue still sat below the second quarters of 2019 ($181.7 million) and 2018 ($140.6 million).

The company forecasts full-year revenue between $530 million and $540 million, while acknowledging that a worsening of the pandemic could cause those figures to drop.

CEO Chris Rondeau indicated that Planet Fitness, which focuses on affordability and inclusivity, has a market opportunity in the current climate. 

“There is a dislocation in the fitness industry, with approximately 22% of U.S. gyms permanently closed due to the impact from COVID-19 through the end of the second quarter,” he said, adding that more Americans are realizing the value of fitness.

Planet Fitness also announced a deal to open at least 80 locations in Mexico over the next five years. The company is partnering on the expansion with Fitness Para Todos, a joint venture of the Ibarra Group and Argonne Capital Group, which already has investments in over 95 U.S. Planet Fitness gyms.