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Investing.com -- Planet Fitness (NYSE:PLNT) saw its shares slide more than 3% in U.S. premarket trading Thursday after the franchisor and operator of fitness centers reported worse-than-expected results for the fiscal first quarter.
The company reported first-quarter earnings per share (EPS) of $0.59, falling short of the $0.62 expected by analysts. Revenue jumped 12% year-over-year to $276.7 million, but was still below the consensus estimate of $279.8 million.
By segment, franchise revenue rose 11% year over year to $115.2 million, in line with expectations. Revenue from corporate-owned stores increased 9.2% to $133.7 million, missing the projected $136.3 million.
Comparable sales for franchises grew 6.2%, ahead of the 5.73% estimate.
"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, CEO of Planet Fitness.
"Given the strength and durability of our model, we delivered this healthy growth against a backdrop of increasing volatility in the macro-economic environment," she added.
Planet Fitness reported an adjusted EBITDA of $117.0 million for the quarter, up 10% from the prior year but below the expected $119.7 million.
The company reiterated most of its full-year outlook, but now expects capital expenditures to rise by about 20%, down from its previous forecast of a 25% increase.