As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the leisure facilities industry, including Planet Fitness (NYSE:PLNT) and its peers.
Leisure facilities companies often sell experiences rather than tangible products, and in the last decade-plus, consumers have slowly shifted their spending from "things" to "experiences". Leisure facilities seek to benefit but must innovate to do so because of the industry's high competition and capital intensity.
The 11 leisure facilities stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.5% while next quarter’s revenue guidance was in line.
Luckily, leisure facilities stocks have performed well with share prices up 11.2% on average since the latest earnings results.
Planet Fitness (NYSE:PLNT)
Founded by two brothers who purchased a struggling gym, Planet Fitness (NYSE:PLNT) is a gym franchise that caters to casual fitness users by providing a friendly and inclusive atmosphere.
Planet Fitness reported revenues of $276.7 million, up 11.5% year on year. This print fell short of analysts’ expectations by 1.2%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ EPS estimates.
"We ended the first quarter with approximately 20.6 million members, an increase of approximately 900,000 from the end of 2024, and we grew system-wide same club sales by 6.1 percent," said Colleen Keating, Chief Executive Officer.
Planet Fitness pulled off the fastest revenue growth of the whole group. The stock is up 2.2% since reporting and currently trades at $103.97.
Is now the time to buy Planet Fitness? Access our full analysis of the earnings results here, it’s free.
Best Q1: Sphere Entertainment (NYSE:SPHR)
Famous for its viral Las Vegas Sphere venue, Sphere Entertainment (NYSE:SPHR) hosts live entertainment events and distributes content across various media platforms.
Sphere Entertainment reported revenues of $280.6 million, down 12.7% year on year, in line with analysts’ expectations. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 32.9% since reporting. It currently trades at $39.51.
Is now the time to buy Sphere Entertainment? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Lucky Strike (NYSE:LUCK)
Born from the transformation of traditional bowling alleys into modern entertainment destinations, Lucky Strike (NYSE:LUCK) operates bowling alleys and other entertainment venues with upscale amenities, arcade games, and food and beverage services across North America.
Lucky Strike reported revenues of $339.9 million, flat year on year, falling short of analysts’ expectations by 5.5%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
Lucky Strike delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.8% since the results and currently trades at $9.35.
Read our full analysis of Lucky Strike’s results here.
Vail Resorts (NYSE:MTN)
Founded by two Aspen, Colorado ski patrol guides, Vail Resorts (NYSE:MTN) is a mountain resort company offering luxury experiences in over 30 locations across the globe.
Vail Resorts reported revenues of $1.30 billion, flat year on year. This result was in line with analysts’ expectations. More broadly, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but a miss of analysts’ skier visits estimates.
The stock is flat since reporting and currently trades at $155.70.
Read our full, actionable report on Vail Resorts here, it’s free.
Xponential Fitness (NYSE:XPOF)
Owner of CycleBar, Rumble, and Club Pilates, Xponential Fitness (NYSE:XPOF) is a boutique fitness brand offering diverse and specialized exercise experiences.
Xponential Fitness reported revenues of $76.88 million, down 3.5% year on year. This print beat analysts’ expectations by 1%. Aside from that, it was a mixed quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ EPS estimates.
Xponential Fitness delivered the highest full-year guidance raise among its peers. The stock is down 3.7% since reporting and currently trades at $8.40.
Read our full, actionable report on Xponential Fitness here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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