Pure Barre to open first studio in Mexico City in 2025

IRVINE, Calif. - Pure Barre, known for being the largest barre fitness brand under the Xponential Fitness umbrella, has announced its upcoming launch in Mexico, with the first studio expected to open in Mexico City in the first quarter of 2025. This expansion into the Mexican market signifies the brand's second international venture outside of North America, following the anticipated debut of its first location in Japan later this year.

The move into Mexico is facilitated by a Master Franchise Agreement, with the team currently developing StretchLab and Rumble franchises in the country taking the helm. Enrique Lopez, General Director of Boutique X Fitness Studios and a veteran in the fitness industry, is spearheading Pure Barre's growth in the region.

Bob Kaufman, President of International at Xponential Fitness, expressed optimism about the brand's future in Mexico, citing the country's burgeoning boutique fitness market. Kaufman believes that Pure Barre's innovative approach to barre workouts positions it well for success in the new market.

Pure Barre's strategy for retaining a devoted customer base includes continuous innovation in class formats, partnerships, and in-studio initiatives. Over the past year, the brand introduced two new class formats: Pure Barre Define, which incorporates heavier weights, and Pure Barre Align (NASDAQ:ALGN), focused on recovery and flexibility. The brand is also known for its engaging member challenges, such as the ongoing 6th annual Fall Fit Challenge, which has seen participation from members across its 630 locations worldwide.

Founded in 2001, Pure Barre has established itself as a leader in the fitness industry, offering a variety of full-body workouts suitable for different fitness levels. The brand has consistently been recognized by Entrepreneur Magazine's Franchise 500 and Inc. Magazine's Inc. 5000.

Xponential Fitness, the parent company of Pure Barre, is a global franchisor of multiple boutique health and wellness brands. With a diverse portfolio that includes names like Club Pilates, CycleBar, and YogaSix, Xponential Fitness continues to expand its reach, providing personalized workout experiences across the United States and internationally.

The information regarding Pure Barre's expansion into Mexico is based on a press release statement.

In other recent news, Xponential Fitness Inc. experienced a slight dip in its second quarter consolidated revenue, though it saw a significant 22% increase in franchise revenue. Despite the revenue miss, Lake Street Capital Markets maintained a buy rating on the company's shares, albeit with a reduced price target of $20.00. This adjustment was influenced by the earnings miss and revised guidance, but the firm remains confident in Xponential's long-term prospects.

The company's key performance indicators showed encouraging signs, with increases in new memberships, studio visits, and franchise revenue. Furthermore, Xponential Fitness has secured an additional $25 million in term loans to support its ongoing operational needs. This move reflects the company's strategic financial decisions to maintain a robust balance sheet and ensure liquidity for its business obligations and growth strategies.

In addition to financial developments, Xponential Fitness announced a salary increase for its Chief Legal Officer, Andrew Hagopian, as part of its ongoing efforts to ensure competitive compensatory arrangements for key executives. As the company navigates these changes, it remains focused on supporting its franchisees, fostering innovation, and expanding internationally.

InvestingPro Insights

As Pure Barre prepares to extend its footprint into Mexico, its parent company Xponential Fitness (NYSE: XPOF) showcases a blend of financial metrics that could interest investors monitoring the brand's growth trajectory. According to InvestingPro data, Xponential Fitness holds a market cap of approximately $605.56 million with a notable gross profit margin of 68.57% over the last twelve months as of Q2 2024. This impressive margin underscores the company's ability to manage its cost of goods sold effectively, which is critical as it ventures into new international markets.

InvestingPro Tips indicate that Xponential Fitness's management has been actively repurchasing shares, which often reflects confidence in the company's future prospects. Additionally, four analysts have revised their earnings upwards for the upcoming period, suggesting that the financial community anticipates stronger performance ahead. These insights, coupled with the fact that analysts predict the company will be profitable this year, provide a positive outlook for potential investors and existing shareholders alike.

While the company is trading at a P/E ratio of 28.32, it's worth noting that it is considered low relative to near-term earnings growth. This could signify that the stock is undervalued based on expected earnings, potentially offering an attractive entry point for investors. For those interested in further analysis, InvestingPro offers additional tips and a comprehensive suite of tools to aid in making informed investment decisions, with more tips available at https://www.investing.com/pro/XPOF.

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