Couch Potatoes to Gym Buffs: Planet Fitness Has a New Plan

After another solid quarter, Planet Fitness is changing its focus to win over die-hard exercisers

Planet Fitness is doubling down on efforts to position itself for gym customers at all stages of their fitness journey, and will improve its brand strategy to appeal to former gym members , and marathoners, the gym. The giant announced its Q3 earnings call with investors.

Total net income rose 5.3% to $292.2 million in the third quarter compared to the year-ago period and saw same-store sales growth of 4.3%. During the quarter, 21 new Planet Fitness clubs were opened, which included 12 retail clubs and 9 corporate clubs.

The famous fitness chain has long described 2024 as one of change – which included an increase in the price of annual memberships in the summer for the first time in almost 30 years for new members. The brand continues to work with Gen Z and the millennials, who always make up a large group of new members and influence the shape of the Planet and the mix of tools, which have evolved into strength training.

“We delivered solid results in the quarter, including revenue growth of over 5 percent, revenue growth of nearly 3 percent, and EBITDA growth of nearly 10 percent, and we are raising our outlook for certain important financial goals,” Planet Fitness CEO Colleen Keating said. .

Keating, who was appointed CEO of HVLP Fitness earlier this year, adopted a “feet on the street” approach, visiting more than 50 Planet Fitness clubs in his first 100 days and interacting with salespeople, managers and members. group.

“I’ve seen a lot of gyms in my day, and when you’re at one of our clubs, you know you’re at Planet Fitness,” Keating said. They are bright, clean and cheerful with a friendly, welcoming and approachable attitude. But what I am most excited about is that we have the opportunity to build our quality and improve our experience to ensure that our equipment design and floor plan continue to deliver to our members today and keep us we are important for tomorrow. ”

Despite the strong atmosphere within Planet Fitness clubs, Keating shared that a recent customer survey found that both members and non-members do not consider Planet Fitness a place to promote. before their training—a concept that the brand is beginning to challenge with its campaigns. For example, one summer social media campaign compared a “Planet Fitness dumbbell” to a more expensive “gym dumbbell” of the same weight, showing Planet’s value in a humorous way.

“We’re starting a shift in talking about the high value of the Planet Fitness membership versus focusing on our low price and using our advertising to showcase the breadth of high-quality equipment at our club,” Keating he explained.

Keating pointed out that while Planet’s long-term goal of 5,000 groups in the US is based on the model of a traditional 20,000-square-foot gym, the gym continues to operate on smaller footy groups. for unpopulated and sparsely populated areas. promotes domestic opportunities.

Other initiatives underway include improving the Planet Fitness member experience and accelerating the group’s new growth. The brand is also teasing “cool tech updates” soon.

Planet Fitness continues to build its presence in new markets such as Mexico, Spain and Australia.