Planet Fitness (NYSE: PLNT) reported mixed first-quarter results on Thursday. Earnings came in at USD .35 a share, narrowly outpacing estimates of USD .34 a share. Total revenue increased 22.7% from the year-quarter prior to USD 148.8 Million, short of USD 153.0 estimated by analysts.
Corporate-owned store revenue rose 16.3% year-over-year to USD 38 Million, whereas franchise revenues soared 20.4% to USD 65.8 Million. Equipment segment revenues grew 32.3% to USD 45 Million thanks to a rise in sales to new stores.
"Fiscal year 2019 is off to a great start. Our strong first quarter results, which included 10.2% system-wide same store sales growth and 65 new store openings, show why Planet Fitness is a leader in the fitness industry," said Chief Executive Officer Chris Rondeau. PF closed out the first quarter with more than 13.6 million members. It expects revenue and EPS to increase 15% and 25%, respectively compared the year prior.
Planet Fitness opened up 10 new stores adjacent to select Kohl’s locations in 2019. The two companies announced a collaboration in March in an effort to drive foot traffic to both businesses. PF research shows that nearly 90% of members shop at other retailers within the same shopping center, and 59% do so at least once a week.
The Company also rolled out its ‘Teen Summer Challenge’ Program last week. High schoolers, ages 15- 18, will be allowed to work out at any Planet Fitness location free of charge from May 15 through September 1.
Shares of Planet Fitness are up 86% over the last 12 months.