Following another solid quarter, Planet Fitness shifts focus to win over hardcore gym-goers
Planet Fitness is doubling down on efforts to position itself as the go-to-club for fitness consumers at all phases of their fitness journey and will refine its brand strategy to appeal to former members, gym newbies, and those training for marathons, the gym giant announced on its Q3 earnings call with investors.
Planet’s total revenue rose 5.3% to $292.2 million in the third quarter compared to the prior year’s period and saw system-wide same-club sales growth of 4.3%. During the quarter, 21 new Planet Fitness clubs were opened, which included 12 franchisee-owned and 9 corporate-owned clubs.
The popular fitness chain has long described 2024 as one of transition — one that included a base membership price increase over the summer for the first time in nearly 30 years for new members. The brand continues to resonate with Gen Z and millennials, who consistently make up the largest group of new members and are influencing Planet’s format and equipment mix, which has shifted toward strength training.
“We delivered solid results in the quarter, including more than 5 percent revenue growth, approximately 3 percent net income growth, and approximately 10 percent Adjusted EBITDA growth, and are raising our outlook for certain key financial targets,” Planet Fitness CEO Colleen Keating said.
Keating, appointed CEO of the HVLP fitness operator earlier this year, has adopted a “feet on the street” approach, visiting over 50 Planet Fitness clubs during her first 100 days and engaging with franchisees, managers, and team members.
“I’ve seen a lot of gyms in my day, and when you’re in one of our clubs, you know you’re in a Planet Fitness,” Keating said. “They’re bright, clean, and energizing with a friendly, welcoming, and approachable feel. Yet what really excites me is that we have an opportunity to build on our quality and modernize our experience to ensure our equipment layout and floor plan consistently deliver for our members today and keep us relevant for tomorrow.”
Despite the energetic atmosphere within Planet Fitness clubs, Keating shared that a recent consumer survey found that both members and non-members do not view Planet Fitness as a place to advance their fitness training—a perception the brand is beginning to challenge through its campaigns. One late-summer social media campaign, for instance, compared a Planet Fitness dumbbell to a high-priced gym dumbbell of equal weight, demonstrating Planet’s value in a humorous way.
“We’re beginning the shift to communicating the high value of a Planet Fitness membership versus primarily focusing on our low price and using our marketing to demonstrate the breadth of high-quality top-tier equipment in our club,” Keating explained.
Keating pointed out that while Planet’s long-term target of 5,000 clubs in the U.S. is based primarily on its 20,000 square-foot traditional facility model, the fitness chain continues to work on smaller footprint clubs for infill locations and less populated areas, which she says furthers domestic opportunities.
Other initiatives in the pipeline include enhancing the Planet Fitness member experience and accelerating new club growth. The brand also teased “cool tech enhancements” on the horizon.
Planet Fitness is also continuing to build its presence in newer markets such as Mexico, Spain, and Australia.
