How the 'K-shaped' economy is showing up at two big U.S. gyms
#Life Time #Planet Fitness #K-shaped economy #Consumer spending #Revenue growth #Membership #Price hikes #Wellness #Affluent consumers #Price-sensitive consumers
📌 Key Takeaways
- Life Time Group Holdings reported 12.3% revenue growth in Q4 2025, driven by higher average dues and increased in-center spending from affluent consumers.
- Planet Fitness added 1.1 million new members in 2025 but projects slower revenue growth for fiscal 2026 due to potential weakness in same-store sales and membership trends.
- The differing results of Life Time and Planet Fitness illustrate a 'K-shaped' economy, with higher-income consumers continuing to spend while lower-income consumers show signs of spending strain.
- Planet Fitness is testing price hikes and investing in new amenities to boost revenue per member and attract younger demographics, but analysts remain cautious about its ability to meet Wall Street expectations.
- The fitness industry's performance reflects a broader economic trend of increasing consumer spending inequality across various sectors.
📖 Full Retelling
Two of the largest U.S. gym operators, Life Time Group Holdings and Planet Fitness, reported strong revenue growth in 2025 but highlighted differing consumer spending trends for 2026, indicative of a 'K-shaped' economy. Life Time experienced continued growth driven by affluent consumers willing to spend on premium fitness experiences, while Planet Fitness's outlook for 2026 suggests potential strain on price-sensitive consumers. This divergence mirrors broader economic shifts across industries like airlines and fast food, where luxury offerings cater to higher earners and value options are emphasized for budget-conscious customers.
🏷️ Themes
K-shaped economy, Consumer spending, Fitness industry, Economic inequality, Growth vs. Price Sensitivity
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In this article PLNT LTH Follow your favorite stocks CREATE FREE ACCOUNT watch now VIDEO 2:40 02:40 What two of America’s most popular gyms tell us about the ‘K-shaped’ economy CNBC Digital Original Video Two of the largest U.S. gym operators delivered the same headline in their latest earnings reports: strong growth. But beneath the surface, Life Time Group Holdings and Planet Fitness told very different stories about the American consumer. They highlighted a widening divide between higher-income households that continue to spend freely and more price-sensitive consumers who are beginning to show signs of strain. The Planet Fitness logo is seen on the outside of its gym at the Loyal Plaza in Loyalsock Township, Pennsylvania. Paul Weaver | Lightrocket | Getty Images Both companies reported double-digit percentage revenue growth, rising memberships and expanding footprints in 2025. Their respective outlooks for 2026, however, point to a "K-shaped" economy, a term used to describe a split in spending trends between higher and lower-income groups. Here's what we learned. Life Time: Affluent consumers keep spending Life Time's earnings reinforced that affluent Americans are still shelling out, especially on their health and wellness. In the fourth quarter, the company's total revenue rose 12.3% year over year to $745.1 million. CFO Erik Weaver attributed the increase to "continued execution in our centers," including higher average dues and stronger utilization of in-center businesses. The company, which operates large-format fitness clubs with amenities like pools, spas and cafes, increased membership dues last year by roughly $10 to $30 per member. The change did not slow demand — membership and engagement have continued to climb. A growing share of Life Time's revenue is coming from in-center spending, which topped $191 million in the fourth quarter. Members are taking full advantage of additional personal training, spa services and food and beverage as they treat th...
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