Planet Fitness (NYSE:PLNT) declined after lowering full-year forecasts.
Shares fell 3.3% on Thursday.
Revenue for 2023 is expected to increase 12% compared to a previous estimate of between 13% and 14% growth. Adjusted net income should rise 30% from a previous estimate of 30% to 33% growth.
Adjusted earnings per share is expected to increase 34% compared to a previous expectation of 33% to 36% growth.
For the second quarter, the fitness chain reported non-GAAP EPS of $0.65, which beat the average analyst estimate by $0.10. Revenue of $286.5M beat by $34.52M.
“More of our members are working out more frequently, previous members are rejoining at a faster rate than they did pre-pandemic, and they’re staying longer as Q2 was our eighth straight quarter with lower year-over-year cancellation rates,” Chief Executive Officer Chris Rondeau said in a statement.
However, “as a result of the compounding effects of higher new store construction costs and increased interest rates, we are reducing our 2023 outlook for placements of equipment in new franchisee stores to approximately 140” from 160 previously expected.
“While we are bringing down our near-term store growth forecast due to external headwinds, the fundamentals of the business remain strong as evidenced by our Q2 results.”
In June, PLNT said it is prioritizing high-return investments and would stay committed to an asset-light model.
PLNT is down 18% so far in 2023.
More on Planet Fitness:
Planet Fitness falls as 2023 forecasts weaken
