Planet Fitness CEO Says Gym Membership Nearly Peak Before Covid

Planet Fitness gym memberships are almost back to their pre-pandemic peak, CEO Chris Rondo told CNBC on Thursday, demonstrating people’s desire to exercise outside the home.

In an interview with Mad Money, Rondo said the gym chain now has 15 million people, calling the figure “incredible” after the establishments were closed months earlier during the Covid crisis and then, even when they reopened, many people did not dare to return immediately.

“Our growth was 15.5 [million members]… We are 97% back where we were before Covid, ”said Rondo.

Rondo’s comments came after Planet Fitness shares rose 11.7% on Thursday to close at $ 92.25, hitting a record high for the session. Investors welcomed the company’s strong third-quarter financial results, which recorded Planet Fitness’s first earnings since the fourth quarter of 2019.

Total revenues of $ 154.3 million were up 46.4% over the same period last year when the pandemic had a major impact. Planet Fitness also released its full-year outlook for a number of metrics, including revenue and new store openings.

“In the third quarter, we saw the highest net member growth in company history,” said Rondo. “People choose bricks and mortar. They’re coming back faster than we’ve ever seen. They are returning to our clubs faster than we have ever seen. Generation Z is joining faster than we’ve ever seen. the winds are blowing in the right direction and the sails are wide open. “

Following the close of trading on Thursday, Peloton reported higher-than-expected losses in the first fiscal quarter, as well as earnings that fell short of Wall Street’s estimates. The fitness bike maker, which benefited greatly during the pandemic, fell more than 25% after business hours.

Peloton’s results come as people return to gyms like Planet Fitness.

“I never gave up on it. Me and my team, the franchisee, we knew that once we were on the other side of this, people would come back. [to gyms]”He said. He added,” Now we are definitely stronger on the other side of this, and our moat is even much wider. “