Planet Fitness, Inc. reported total revenue decreased 77.9 percent to $40.2 million in the second quarter ended June 30, compared to the prior-year period. The net loss attributable to Planet Fitness, Inc. was $29.2 million, or 36 cents per diluted share, compared to net income of $34.8 million, or 41 cents per diluted share, in the prior-year period.
Franchise segment revenue decreased 70.8 percent to $21.0 million from $71.8 million in the prior-year period. The decrease in franchise segment revenue for the second quarter of 2020 is a result of temporary store closures related to COVID-19. Corporate-owned stores segment revenue decreased 76.3 percent to $9.4 million from $39.7 million in the prior-year period. The $30.3 million decrease was a result of temporary store closures related to COVID-19. Equipment segment revenue decreased 86.0 percent to $9.8 million from $70.2 million in the prior-year period, due to lower equipment sales to new and existing franchisee-owned stores in the three months ended June 30, 2020 compared to the three months ended June 30, 2019 as a result of temporary store closures due to COVID-19.
“I am proud of how the entire Planet Fitness system is managing through this challenging time, especially the passion and commitment to take care of our members demonstrated by our store team members, headquarters employees and franchisees,” said company CEO Chris Rondeau. “Following the temporary closure of all Planet Fitness stores in mid-March in response to the pandemic, 1,477 of our stores are reopened and operating to-date. This has been achieved through the execution of our expansive COVID-19 re-opening playbook designed to provide a safe and healthy in-store environment and strictly adhering to the guidelines laid out by state and local governments and health authorities. It continues to be a very fluid situation, with a number of states experiencing a spike in new cases as the third quarter got underway, which has resulted in certain stores re-closing pursuant to local mandates. We recently took additional steps to protect our members and staff by requiring everyone to wear a mask inside our stores except while actively working out, and we’ll continue to proceed cautiously until there is greater certainty on when conditions will return to normal. While the near-term operating environment is likely to remain volatile and negatively affect our near-term revenue and profitability, I am confident that Planet Fitness is well-positioned to capitalize on the industry consolidation that we believe will emerge over the next several years and increased focus on health & wellness.”
2020 Outlook
For the year ending December 31, 2020, the company previously withdrew guidance as a result of uncertainty due to COVID-19. The company is not providing an update at this time.
Photo courtesy Planet Fitness
