IRVINE, Calif. - Xponential Fitness, Inc. (NYSE: XPOF), a prominent global franchisor of boutique health and wellness brands, has announced the appointment of Bruce Haase to its Board of Directors. Haase's tenure began on Saturday, bringing his extensive experience in consumer hospitality and franchising to the boardroom.
Bruce Haase's career spans over two decades, with leadership roles including CEO positions at Extended Stay America (NASDAQ:STAY) and WoodSpring Suites, as well as executive responsibilities at Choice Hotels (NYSE:CHH) International. His expertise in franchising is further solidified by his position as Chairman and majority shareholder of HomeWell Care Services, a leading in-home care franchisor.
Mark Grabowski, Chairman of the Board, expressed confidence in Haase's proven track record of value creation and business transformation. Mark King, CEO of Xponential, also welcomed Haase's operational acumen, anticipating his contribution to the company's transition toward a marketing and operations-driven culture with a focus on franchisee success.
In response to his appointment, Haase expressed his dedication to fostering a franchisee-first culture at Xponential Fitness and to supporting the company's pursuit of profitable, sustainable growth.
Xponential Fitness operates a diverse portfolio of nine brands, including Club Pilates, CycleBar, and YogaSix, with a presence in 49 U.S. states and 27 countries. The company aims to make health and wellness accessible through personalized workout experiences in studio locations worldwide.
This move comes as Xponential Fitness continues to drive strategic growth and enhance its governance structure. The information regarding Haase's appointment is based on a press release statement from Xponential Fitness, Inc.
In other recent news, Xponential Fitness showcased a period of growth and strategic realignment, despite facing some challenges. The company reported an 8% rise in North America average unit volume and a 21% increase in North American system-wide sales. However, Xponential also experienced a widened net loss of $18 million, up from $5.2 million in the previous year.
On the brighter side, consolidated revenue reached $80.5 million, and franchise revenue saw a significant increase of 22% to $44.5 million. The total global studio count also reached 3,178, with the addition of 125 new openings.
In terms of future expectations, Xponential revised its forecast for global new studio openings in 2024 to 490-510. The company expects system-wide sales to range between $1.705 billion and $1.715 billion, with total revenue anticipated to be $310 million to $320 million. The company also plans to focus capital expenditures on technology transformation initiatives.
These recent developments highlight Xponential Fitness's commitment to its vision of becoming the premier franchisor in the health and wellness space, despite the challenges it faces.
InvestingPro Insights
As Xponential Fitness (NYSE: XPOF) welcomes Bruce Haase to its Board of Directors, it's worth examining some key financial metrics that shed light on the company's current position and future prospects.
According to InvestingPro data, Xponential Fitness boasts a market capitalization of $743.87 million, reflecting its significant presence in the boutique fitness industry. The company's revenue for the last twelve months as of Q3 2023 stood at $326.72 million, with a notable revenue growth of 9.0% over the same period. This growth aligns with the company's strategic expansion efforts mentioned in the article.
One of the standout metrics is Xponential's impressive gross profit margin of 66.61% for the last twelve months as of Q3 2023. This high margin suggests that the company's franchise model, which includes nine diverse fitness brands, is operating efficiently. An InvestingPro Tip highlights these "impressive gross profit margins," indicating that the company's business model is effectively generating value from its revenue streams.
Despite these positive indicators, it's important to note that Xponential Fitness was not profitable over the last twelve months, as pointed out by another InvestingPro Tip. However, the same source suggests that analysts predict the company will be profitable this year, which could be a promising sign for investors and aligns with the company's focus on "profitable, sustainable growth" mentioned in the article.
The appointment of Bruce Haase to the Board of Directors comes at a time when Xponential Fitness has seen a strong return over the last month, with a 16.88% price total return. This recent performance, coupled with a significant 70.0% price total return over the last six months, indicates growing investor confidence in the company's direction.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips for Xponential Fitness, providing a more comprehensive view of the company's financial health and market position.
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