Planet Fitness revenues up as US consumer confidence returns
by Tom Walker | 01 Nov 2016
Planet Fitness opened 37 new franchised clubs during Q3
US-based health club operator Planet Fitness has reported a 10 per cent increase in like-for-like sales during the third quarter of 2016, mirroring a steady strengthening of the US economy and the return of consumer confidence.
Announcing its results for the three months to 30 September, the group said total revenue jumped by 26.4 per cent to US$87m – driven by new members signing on at existing clubs and a steady pipeline of new club openings. During the quarter, Planet Fitness opened 37 new franchised clubs, increasing the number of sites in its portfolio to 1,242.
The company now has 8.7 million members across the US, Canada and the Dominican Republic.
According to Planet Fitness CEO Christopher Rondeau, the positive results are a sign that US consumers are returning to fitness clubs.
“Our business continues to get stronger,” he said. "Like-for-like sales increased 10 per cent as a growing number of casual and first time gym users are joining Planet Fitness.”
Rondeau added that a successful marketing campaign has also enabled the group to strengthen its position in the marketplace.
“Our increased national and local advertising spend, which continues to increase with each incremental new join, is fuelling greater brand awareness in all markets and membership growth across the store base.”
Planet Fitness announced its results in the same week as Charles Evans, president of the Federal Reserve Bank of Chicago (RBC), said he was optimistic about the strengthening US economy.
Speaking to the media, Evans said the economy is doing "quite well' – predicting economic growth of between 2 per cent and 2.5 per cent in the second half of this year.
RBC is one of 12 regional Reserve Banks which, along with the Board of Governors in Washington, DC, make up the US central bank.
To see the full Planet Fitness results, click here.
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US-based health club operator Planet Fitness has reported a 10 per cent increase in like-for-like sales during the third quarter of 2016, mirroring a steady strengthening of the US economy and the return of consumer confidence. Announcing its results for the three months to 30 September, the group said total revenue jumped by 26.4 per cent to US$87m – driven by new members signing on at existing clubs and a
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