It’s the revenge of the gyms.
What is going on: Fitness chains such as Life Time and Planet Fitness reported sharp increases in revenue and users this week as Peloton’s slump deepened.
- It’s a dramatic reversal of their fortunes since the start of the pandemic, when fitness facilities closed and stocks of home workouts flourished.
The big picture: Athletes are increasingly comfortable going to the gym despite ongoing cases of COVID.
- Planet Fitness’ total revenue increased 67% in the first quarter from a year earlier, with the chain adding 37 new locations during the period for a total of 2,291.
- Life Time comparable sales grew 50% in the first quarter, compared to a year earlier, when membership grew 24%. The chain plans to expand its 160 locations with another 12 in 2022 and in 2023.
- “The energy is coming back,” Life Time president Tom Bergmann told Axios.
Yes but: The fitness chains have not been immune to the broader market turmoil in 2022. Shares of Life Time are down about 27% this year, while shares of Planet Fitness are down about 23%.
- But both are surpassing Peloton’s 63% plunge as concerns mount over the stationary bike company’s growth prospects.
Our Thought Bubble: Many Americans are rediscovering the joy of doing physical exercise with others.
- “You can only sit in your house and exercise for so long,” Bergmann says.