- Xponential delivers $1.40 billion system-wide sales and 16%
same store sales growth in 2023
Xponential Fitness, Inc. (NYSE: XPOF), the largest global
franchisor of health and wellness brands, today provided 2023
operating highlights ahead of the Company’s participation at the
ICR 2024 Conference to be held January 8-10, 2024 in Orlando,
Florida and the Jefferies Winter Consumer Summit to be held January
22-23, 2024 in Avon, Colorado.
2023 Operating Highlights
Please note that all metrics below represent North America only,
unless noted.
For the full year ended December 31, 2023, the Company:
- Grew to 3,062 open studios, and increased total licenses sold
to 6,255 across 10 brands globally;
- Grew total members by 21% year-over-year to 717,000 up from
590,000 in 2022;
- Grew studio visits by 31% year-over-year to 51.5 million, up
from 39.2 million in 2022;
- Increased system-wide sales(1) to $1.40 billion, up 36% from
$1.03 billion in 2022;
- Delivered same store sales(2) growth of 16%, compared to 25% in
2022; and
- Achieved Q4 2023 run-rate average unit volume (AUV)(3) of
$590,000, compared to $522,000 in Q4 2022.
“In 2023, we demonstrated the strength and resilience of
Xponential’s business through continued execution and consistent,
predictable results,” said Anthony Geisler, CEO of Xponential
Fitness, Inc. “We recently held our annual franchise convention, in
which over 2,000 attendees participated to discuss growth
strategies, foster brand awareness and formally introduce our
newest brand, Lindora. Our avid customer base, strong visitation
trends and departure from the company-owned transition studio
strategy position us well to increase profitability in 2024.”
Performance Compared to 2023 Outlook
The Company’s today announced operating highlights are at or
exceeding the high-end of the previously provided full year 2023
outlook:
- New studio openings of 557, at the top half of the guidance
range of 550 to 560, and an increase of 9% as compared to full year
2022;
- North America system-wide sales of $1.40 billion, exceeding the
high end of the guidance range of $1.390 million to $1.395 billion,
and an increase of 36% as compared to full year 2022.
Xponential Fitness plans to report its fourth quarter and full
year 2023 results and provide its full year 2024 outlook in early
March. The date of the Company’s earnings conference call will be
announced in the coming weeks.
Participation at Upcoming Conferences
The Xponential Fitness management team will be participating at
the ICR 2024 Conference on January 8-10, 2024 in Orlando, Florida.
Anthony Geisler, Chief Executive Officer, John Meloun, Chief
Financial Officer, and Sarah Luna, President, will participate in
meetings with investors throughout the event and are scheduled to
present on Tuesday, January 9, 2024 at 2:00 p.m. ET.
In addition, management will be participating in the Jefferies
Winter Consumer Summit to be held January 22-23, 2024 in Avon,
Colorado. Management will participate in meetings with investors
throughout the event.
The ICR presentation will be broadcast over the Internet and can
be accessed in the Investor Relations section of Xponential
Fitness’ website at https://investor.xponential.com/.
About Xponential Fitness, Inc.
Xponential Fitness, Inc. (NYSE: XPOF) is the largest global
franchisor of health and wellness brands. Through its mission to
make health and wellness accessible to everyone, the Company
operates a diversified platform of ten brands spanning across
verticals including Pilates, indoor cycling, barre, stretching,
rowing, dancing, boxing, running, functional training and yoga. In
partnership with its franchisees, Xponential offers energetic,
accessible, and personalized workout experiences led by highly
qualified instructors in studio locations throughout the U.S. and
internationally, with franchise, master franchise and international
expansion agreements in 49 U.S. states and 22 additional countries.
Xponential’s portfolio of brands includes Club Pilates, the largest
Pilates brand in the United States; CycleBar, the largest indoor
cycling brand in the United States; StretchLab, the largest
assisted stretching brand in the United States offering one-on-one
and group stretching services; Row House, the largest franchised
indoor rowing brand in the United States; AKT, a dance-based cardio
workout combining toning, interval and circuit training; YogaSix,
the largest yoga brand in the United States; Pure Barre, a total
body workout that uses the ballet barre to perform small isometric
movements, and the largest Barre brand in the United States; STRIDE
Fitness, a treadmill-based cardio and strength training concept;
Rumble, a boxing-inspired full-body workout; and BFT, a functional
training and strength-based program. For more information, please
visit the Company’s website at xponential.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
based on current expectations, estimates, forecasts and projections
of future performance based on management’s judgment, beliefs,
current trends, and anticipated financial performance. These
forward-looking statements include, without limitation, statements
relating to expected growth of our business; projected number of
new studio openings; profitability; the expected impact of our
movement away from company-owned transition studios; anticipated
industry trends; projected financial and performance information
such as system-wide sales; and other statements under the section
“2023 Outlook”; our competitive position in the boutique fitness
industry; and ability to execute our business strategies and our
strategic growth drivers. Forward-looking statements involve risks
and uncertainties that may cause actual results to differ
materially from those contained in the forward-looking statements.
These factors include, but are not limited to, our relationships
with master franchisees, franchisees and international partners;
difficulties and challenges in opening studios by franchisees; the
ability of franchisees to generate sufficient revenues; risks
relating to expansion into international markets; loss of
reputation and brand awareness; general economic conditions and
industry trends; and other risks as described in our SEC filings,
including our Annual Report on Form 10-K for the full year ended
December 31, 2022 filed by Xponential with the SEC and other
periodic reports filed with the SEC. Other unknown or unpredictable
factors or underlying assumptions subsequently proving to be
incorrect could cause actual results to differ materially from
those in the forward-looking statements. Although we believe that
the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, level of activity,
performance, or achievements. You should not place undue reliance
on these forward-looking statements. All information provided in
this press release is as of today’s date, unless otherwise stated,
and Xponential undertakes no duty to update such information,
except as required under applicable law.
Footnotes
1System-wide sales represent gross sales by all North America
studios. System-wide sales include sales by franchisees that are
not revenue realized by us in accordance with GAAP. While we do not
record sales by franchisees as revenue, and such sales are not
included in our consolidated financial statements, this operating
metric relates to our revenue because we receive approximately 7%
and 2% of the sales by franchisees as royalty revenue and marketing
fund revenue, respectively. We believe that this operating measure
aids in understanding how we derive our royalty revenue and
marketing fund revenue and is important in evaluating our
performance. System-wide sales growth is driven by new studio
openings and increases in same store sales. Management reviews
system-wide sales weekly, which enables us to assess changes in our
franchise revenue, overall studio performance, the health of our
brands and the strength of our market position relative to
competitors.
2Same store sales refer to period-over-period sales comparisons
for the base of studios. In accordance with industry standard, we
define the same store sales base to include studios in North
America that are in traditional locations and that have generated
positive sales for at least 13 consecutive calendar months as of
the measurement date. Any transfer of ownership of an existing
studio does not affect this metric. We measure same store sales
based solely upon monthly sales as reported by franchisees. This
measure highlights the performance of existing studios, while
excluding the impact of new studio openings. Management reviews
same store sales to assess the health of the franchised
studios.
3AUV is calculated by dividing sales during the applicable
period for all studios being measured by the number of studios
being measured. Quarterly run-rate AUV consists of average
quarterly sales activity for all North America traditional studio
locations that are at least 6 months old at the beginning of the
respective quarter, and that have non-zero sales in the period,
multiplied by four. Monthly run-rate AUV is calculated as the
monthly AUV multiplied by twelve, for studios that are at least 6
months old at the beginning of the respective month, operate in
traditional locations and have nonzero sales. AUV growth is
primarily driven by changes in same store sales and is also
influenced by new studio openings. Management reviews AUV to assess
studio economics.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240107397095/en/
Addo Investor Relations investor@xponential.com (310)
829-5400
Xponential Fitness (NYSE:XPOF)
Historical Stock Chart
From Apr 2024 to May 2024
Xponential Fitness (NYSE:XPOF)
Historical Stock Chart
From May 2023 to May 2024