Planet Fitness, Life Time capitalize as Peloton slumps


It’s the revenge of the gyms.

What’s happening: Fitness chains like Life Time and Planet Fitness reported sharp increases in revenue and users this week at the same time as Peloton’s slump deepens.

  • It’s a dramatic reversal of their fortunes from the early going of the pandemic, when fitness facilities were shuttered and stay-at-home workout stocks were flourishing.

The big picture: Exercisers are growing increasingly comfortable with hitting the gym despite lingering cases of COVID.

  • Planet Fitness’ total revenue soared 67% in its first quarter, compared with a year earlier, and the chain added 37 new locations during the period for a total of 2,291.
  • Life Time’s comparable sales soared 50% in the first quarter, versus a year earlier, as memberships rose 24%. The chain plans to add to its 160 locations with another 12 in 2022 and in 2023.
  • “The energy is coming back,” Life Time President Tom Bergmann tells Axios.

Yes, but: The fitness chains have not been immune to broader market turmoil in 2022. Life Time’s stock is down about 27% this year, while Planet Fitness shares are down about 23%.

  • But both are outpacing Peloton’s 63% plunge as concerns mount about the stationary bicycling company’s growth prospects.

Our thought bubble: Many Americans are rediscovering the joy of physically working out alongside others.

  • “You can only sit inside your home and do a workout for so long,” Bergmann says.


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