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 as Peloton’s slide deepened.
- It’s a dramatic reversal of their fortunes since the start of the pandemic, when fitness facilities were shuttered and home workout stocks flourished.
The panorama: Athletes are increasingly comfortable going to the gym despite persistent cases of COVID.
- Planet Fitness’s total revenue soared 67% in its first quarter compared to a year earlier, and the chain added 37 new locations during the period for a total of 2,291.
- Life Time comparable sales were up 50% in the first quarter, compared to a year earlier, as memberships increased 24%. The chain plans to add to its 160 locations with another 12 in 2022 and 2023.
- “The power is coming back,” Life Time president Tom Bergmann tells Axios.
Yes, but: Fitness chains have not been immune to the broader market turmoil in 2022. Shares of Life Time are down 27% this year, while shares of Planet Fitness are down 23%.
- But both are outpacing Peloton’s 63% drop as concerns mount about the stationary bike company’s growth prospects.
Our thought bubble: Many Americans are rediscovering the joy of exercising with others.
- “You can only sit inside your house and exercise for so long,” says Bergmann.
