Navigating demand shifts and economic uncertainty, the fitness industry is still in flux.
Today, we’re breaking down recent developments, earnings calls, and strategic initiatives across the industry.
Ups and Downs
Following the death of gyms and the workout-from-home gold rush, all signs pointed to the
return of in-person exercise.
But, as some brick-and-mortar brands get back to business, other prominent names are shuttering studios. Meanwhile, faced with shrinking sales, digital and connected fitness companies have endured significant layoffs.
Still, despite the ups and downs, the overall industry is seeing a resurgence.
- By 2025, the global fitness and exercise market will surpass $1.2T.
- As of this June, monthly US gym visits are outpacing 2019’s foot traffic.
- This year, the US boutique studio category is expected to reach $22.1B, surpassing pre-pandemic levels.
Gaining Ground
Planet Fitness. Reaching 16.5M members, the budget gym chain saw systemwide sales
top $1B in Q2.
Of note,
Gen Z is the fastest-growing demographic among Planet Fitness members — 15% of all US high-school-age teens are enrolled in its free summer pass program or are paying members.
Outlook: Despite recession concerns, CEO Chris Rondeau believes Planet Fitness will thrive, noting that the company added 1.1M members and doubled its location count during the 2007–09 financial crisis.
Life Time. Eyeing $1.8B in 2022 revenue, premium health club operator Life Time
reported membership and sales growth in Q2.
Pursuing its Athletic Country Club vision—think gym, pools, sports courts, cafe, and more—the company is investing in new programs, including workouts for members
over 55 years old, hiring hundreds of
personal trainers, and going all-in on
pickleball.
Outlook: Citing the macroeconomic situation, Life Time trimmed full-year guidance and hiked prices. But, CEO Bahram Akradi remains confident in the company’s “healthy living and healthy aging” approach.
Xponential Fitness. Notching its eighth consecutive quarter of growth, Xponential
posted sales and membership gains in Q2.
Thanks to a series of acquisitions, product initiatives, and signed franchise agreements, the boutique studio franchisor was able to weather the pandemic, accelerating once restrictions were lifted.
More specifically, the company’s all-access
XPASS,
digital offering, and growing B2B efforts lifted the brand. International expansion, including studios in the Australia and New Zealand, will help it reach 500+ new locations this year.
Outlook: According to
CEO Anthony Geisler, the economy won’t slow Xpo down. Instead, Geisler said most members have household incomes north of $130K and “do not view fitness as discretionary spend.”
Missing the Mark
As gyms rebound, the recovery isn’t evenly distributed.
SoulCycle. The indoor cycling chain is closing 19 studios (~25% of its footprint) and laying off 75 employees.
According to
CEO Evelyn Webster, customer behavior is shifting and riders haven't returned en mass. As a result, some markets—like NYC—were oversaturated, leading to closures.
After pulling its IPO bid in 2018, the Equinox-owned company debuted its own
smart bike the next year. Missing the home workout boom, Webster told Fitt Insider the company doesn’t comment on bike sales.
Outlook: While its parent company pursues an on-again, off-again
public offering, SoulCycle is
drifting further from its mid-2000s heyday.
F45 Training. Last month, the HIIT studio franchisor
cut 45% of its corporate staff and saw CEO Adam Gilchrist depart.
Made official, the company
slashed 2022 projections for new studio openings, revenue, and EBITDA. It’s also pressing pause on expansion and shelving nascent concepts like FS8. Plus, funding for franchise development has been pulled.
Outlook: Interim CEO Ben Coates said demand for F45 remains strong, but its stated goal of 20K+ worldwide studios feels out of reach for now.
Peloton. After changing CEOs, cutting nearly 3,600 jobs, outsourcing manufacturing, closing storefronts, and raising the price of its Bike+ and Tread, Peloton’s restructuring isn’t done yet.
Now, the company is
retooling its bikes for at-home assembly and could stream its content to rival equipment brands.
Outlook: Shifting its focus from premium hardware to
scalable content/software, Peloton is distancing itself from the playbook it helped write. Which begs the question: Where does
connected fitness go from here?
Elsewhere. Following lackluster earnings,
Beachbody and
Nautilus are searching for a sustainable path forward. Similarly, in the wake of layoffs, Tonal, Hydrow, iFIT, and others are retooling. Meanwhile, Italy’s
Technogym is staying the course, bolstered by its premium brand and multi-channel model.
Punchline: Hopping off the reopening roller coaster and into volatile economic waters, the fitness industry is still grappling with pandemic-era fallout.