Planet Fitness CEO says Gen Z is signing up for gym memberships at higher rates than pre-Covid
A user on a treadmill at a Planet Fitness gym.
Source: Getty Images
Planet Fitness is seeing more pre-teens and teens sign up for their first gym memberships during the coronavirus pandemic, helping to fuel the company’s overall growth.
When the gym operator reported its fourth-quarter results on Thursday, it said Gen Z — which represents people born between 1997 and 2012 — represented the fastest growing demographic group for Planet Fitness memberships in 2021.
Chief Executive Chris Rondeau said in an interview that many younger users flocked to its fitness centers last year as school activities and sports leagues were temporarily paused. In some cities, malls and movie theaters were still shut down. The trend has continued into 2022, he said, despite many group activities resuming and kids heading back to school.
“This past September, when school sports were in play and recreation centers were back open, that didn’t drop off,” he said, adding that Gen Z puts extra emphasis on staying active and maintaining their mental health. “They continue to join, quite a bit above pre-Covid levels.”
Planet Fitness memberships start at a monthly rate of $10, making it a much more affordable option for consumers compared with higher-end chains like Life Time Fitness and Equinox.
According to Rondeau, about 62.5% of members have upgraded to Black Card, a membership option priced at $22.99 a month that gives customers access to any of its more than 2,000 U.S. gyms, along with other perks like tanning beds and guest passes. He said penetration of Black Card members is growing as the company opens more locations.
At the end of January, Planet Fitness counted 15.6 million members, which it said surpasses its pre-pandemic peak.
Net income attributable to Planet Fitness shareholders for the three-month period ended Dec. 31 fell to $5.7 million, or 7 cents per share, compared with $8.7 million, or 11 cents a share, a year earlier. Excluding one-time items, it earned 26 cents a share, in line with analysts’ estimates for 26 cents, based on Refinitiv data.
Total sales grew 37.3% to $183.6 million from $133.8 million a year earlier. That topped estimates for $178.8 million.
Planet Fitness shares were falling around 6% in premarket trading Thursday, amid a broader market selloff. As of Wednesday’s market close, shares are down about 1% year to date.
Find the full financial press release from Planet Fitness here.
