economy
Planet Fitness stock plunges 30% after company slashes guidance, cancels planned price hikes
Shares of Planet Fitness plunged Thursday after the fitness company slashed its guidance and canceled planned price hikes.
TL;DR
- Planet Fitness stock plunged over 30% on Thursday.
- The company slashed its revenue growth projection to 7% from 9%.
- Same-club sales expectations were lowered to 1% from 4%-5%.
- Adjusted net income is now expected to decrease by 2%, down from a previous expected increase of 4%-5%.
- The planned Black Card price increase has been paused pending a review.
- CEO Colleen Keating cited a slower-than-expected net member growth and mentioned four key factors: marketing resonance, competition, weather, and macroeconomic pressures.
- The company is refocusing marketing efforts on capturing demand and driving net member growth, emphasizing affordability.