Planet Fitness Posts Encouraging Results as Gyms Reopen

Planet Fitness shares rose as the company cited increasing use of its gyms after reopenings that began May 1.
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Planet Fitness  (PLNT) - Get Report shares rose sharply Tuesday, after the company reported encouraging results regarding the reopening of its gyms, which began May 1.

Analysts have speculated that many consumers will shy away from gyms out of concern they might contract the coronavirus. But Planet Fitness's numbers showed at least some people are ready to venture back to gym-based workouts.

As of June 1, Planet Fitness reopened some 800 stores across 30 states and one province in Canada. It says another 200 stores may open by mid-June.

Planet Fitness has more than 2,000 stores in North America and the Caribbean.

At the reopened stores, “overall average membership levels have remained relatively consistent compared to the day the store reopened, while both joins and cancels have increased compared to the same time period last year,” the Hampton, N.H., company said in a Securities and Exchange Commission filing.

“Store usage (number of visits per store) at reopened stores that have been open at least two weeks has increased between the date of reopening and May 31, with usage indexing at approximately 60% compared to the same time period last year.”

Planet Fitness offers a so-called Black Card, which costs $22.99 a month and entitles members to use all its clubs. 

“Black Card membership percentage for new joins has been approximately 60%, which is consistent with historical levels,” the company said.

Planet Fitness shares recently traded at $73.84, up 9.3%. The stock has risen 7% over the past three months, compared with a 3% gain for the S&P 500 index.