Winter is coming, and months of pandemic stay-at-home reality has produced a new epidemic of sedentary atrophy. But the world around the next corner is coming over the next few months, which has led to a rejuvenated appetite for fitness solutions.
Andrew Left’s Citron Research has also been out on the space favorably over the past couple weeks with a similar perspective, driving new interest in the space.
With that in mind, we take a look at a few of the emerging active leaders in the space, including: Planet Fitness Inc (NYSE:PLNT), Nautilus, Inc. (NYSE:NLS), B2Digital Inc (OTCMKTS:BTDG), and Peloton Interactive Inc (NASDAQ:PTON).
Planet Fitness Inc (NYSE:PLNT) is a top name in the fitness space. The company bddoperates through three segments: Franchise, Corporate-Owned Stores, and Equipment. The Franchise segment is involved in franchising business in the United States, Puerto Rico, Canada, the Dominican Republic, Panama, Mexico, and Australia.
The Corporate-Owned Stores segment operates corporate-owned stores in the United States and Canada. The Equipment segment engages in the sale of fitness equipment to franchisee-owned stores in the United States.
Planet Fitness Inc (NYSE:PLNT) recently announced the recipients of its annual Judgement Free Generation® scholarships, which recognize teens for their commitment to promoting inclusion, acceptance and kindness. Following a record number of applications, 45 deserving youth from Boys & Girls Clubs throughout the country were each awarded $5,000 for their inspiring efforts to create a brighter, more accepting future.
According to the release, this year marks a major milestone for Planet Fitness’ Judgement Free Generation charitable initiative in partnership with Boys & Girls Clubs of America. The scholarship program has reached the milestone of awarding its 100th scholarship since the start of the program four years ago, representing a total of $500,000 in scholarships to date. Because the program received more applications than ever before, even while many Boys & Girls Clubs were closed or at limited capacity due to the pandemic, Planet Fitness increased the number of scholarships provided. To celebrate and surprise each recipient in a socially-distanced manner, Planet Fitness and Boys & Girls Clubs of America sent special gift packages so all winners could “unbox” the news of their scholarship along with a backpack, water bottle and notebook for the school year ahead.
It will be interesting to see if the stock can break out of its recent sideways action. Over the past week, the stock is net flat, and looking for something new to spark things.
Planet Fitness Inc (NYSE:PLNT) generated sales of $40.2M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -68.4% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($510M against $134.6M).
Nautilus, Inc. (NYSE:NLS) frames itself as a fitness solutions company that designs, develops, sources, and markets cardio and strength fitness products, and related accessories for consumer and commercial use in the United States, Canada, and internationally.
The company operates in two segments, Direct and Retail. It offers specialized cardio products, treadmills, ellipticals, bike products, strength products, home gyms, dumbbells, and kettlebells primarily under the Nautilus, Bowflex, Octane Fitness, Schwinn, and Universal brands, as well as fitness digital platform under the JRNY brand. In addition, it engages in licensing its brands and intellectual properties.
Nautilus, Inc. (NYSE:NLS) most recently announced that the new Bowflex® VeloCore™ – the industry’s first (un) stationary, dual-mode bike that combines leaning technology with digital connectivity for a dynamic full body workout and an immersive digital experience.
For the first time, consumers can choose their riding style – leaning or stationary mode. By engaging the lean mode feature, Bowflex VeloCore riders can push and pull the bike from side-to-side, replicating the movement of outdoor cycling. The high intensity workout helps strengthen and tone the arms and core. For added versatility, the VeloCore bike comes equipped with a proprietary, patent-pending lock-out feature that keeps the bike in stationary mode, so users can opt for a traditional cycling workout.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. NLS shares have been moving higher over the past week overall, pushing about 13% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 45% in that time on strong overall action.
Nautilus, Inc. (NYSE:NLS) generated sales of $114.2M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 21.8% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($47.9M against $78.2M, respectively).
B2Digital Inc (OTCMKTS:BTDG) is, in addition to being “the premier development league for the mixed martial arts (MMA) fighting sport”, a company engaged in a broad roll-up strategy in the training facility and gym space, which is enabled by very positive operating performance dynamics given the Company’s more “hardcore” target market.
Overall, B2Digital operates live events, pay-per-view media, gyms, and other resources to maximize the development of future stars in the MMA sport. The company controls fighting events brands, including Pinnacle, HRMMA, Strikehard, and others, and has developed and deployed the systems and technologies for the operation of the B2 Fighting Series. This includes social media marketing, event management, digital ticketing sales, digital video distribution, digital marketing, PPV, FTV, merchandise sales, brand management, and financial control systems.
B2Digital Inc (OTCMKTS:BTDG) recently announced that it has signed an agreement to acquire two additional premier fitness facilities in Merrillville and Valparaiso, Indiana.
“We are looking forward to expanding our B2 Training Facilities Network to these two new locations,” noted Greg P. Bell, Chairman & CEO of B2Digital. “They will allow us to capitalize on our existing relationships with the local MMA gyms and effectively double our paying customer base overnight for our ONE More Gym business. These two new fitness facilities fit perfectly within our strategic roadmap to continue expanding our capability to develop future MMA stars. We plan on duplicating our existing ONE More Gym business model – that we perfected in our first location – into these two new facilities. We plan on adding Jiu-Jitsu, Boxing, and MMA training areas to the already operating facilities, and include space for the existing MMA gyms in the region where we already have strong relationships.”
If you’re long B2Digital Inc (OTCMKTS:BTDG), the technical context for this announcement is a bit of a bid, with shares acting well over the past five days, up in that timeframe. The 200-day moving average just held as key support, which further suggests an upward trend is in place and continuing, with the stock up about 200% since July.
Peloton Interactive Inc (NASDAQ:PTON) bills itself as an interactive fitness products company in North America. It offers connected fitness products, such as the Peloton Bike and the Peloton Tread, which include touchscreen that streams live and on-demand classes.
The company also provides connected fitness subscriptions for multiple household users, and access to all live and on-demand classes, as well as Peloton Digital app for connected fitness subscribers to provide access to its classes. It has approximately 1.4 million members.
Peloton Interactive Inc (NASDAQ:PTON) recently announced the introduction of the Peloton Bike+ and the new Peloton Tread, growing its portfolio of immersive, connected fitness products and experiences. The Bike+ will be available starting on September 9, 2020 in the U.S., Canada, U.K., and Germany, with the Peloton Tread coming to the U.K. December 26, 2020, U.S. and Canada in early 2021, and Germany later in 2021. The Peloton product suite will now include two Bike models and two Tread models, offering Members new ways to combine cardio and strength training, while adding more affordable entry points to experience Peloton.
“When we launched Peloton, we knew we were onto something special. Now, eight years later, we have a passionate global community of 2.6 million Members, and we feel like we’re just getting started, in terms of how we can impact the health and well-being of people worldwide through our platform, content and products,” said John Foley, Peloton’s CEO and Co-founder. “Our goal is to be the go-to at-home fitness solution for as many people as possible, and with these new product launches, we’ll be able to offer access to Peloton’s best-in-class fitness content at various price points, depending on what consumers are looking for, especially in a world where people are increasingly working out at home.”
If you’re long this stock, then you’re liking how the stock has responded to the announcement. PTON shares have been moving higher over the past week overall, pushing about 14% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 37% in that time on strong overall action. Peloton Interactive Inc (NASDAQ:PTON) pulled in sales of $607.1M in its last reported quarterly financials, representing top line growth of 171.8%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.8B against $772.2M).
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