Xponential Fitness tumbles on surprise Q2 loss, soft 2024 guidance

Xponential Fitness

02/08/2024 13:14

** Shares of Xponential Fitness  XPOF.N  tumble ~22%
premarket to $13.30, a six-week low, after co swung to qtrly
loss and lowered full-yr guidance
    ** Boutique fitness franchiser late Thurs posted Q2 adj
loss/sh of 3 cents, vs 7 cents/sh profit a yr-ago
    ** Analysts had expected adj profit of 23 cents/sh, per LSEG
    ** Rev in qtr fell 1% yr/yr to $76.5 mln, also below
consensus view of $83.6 mln
    ** “We saw some of the same retail softness that other
consumer companies experienced during the second quarter,” CFO
John Meloun said in statement
    ** Co cut 2024 rev guidance to $310-$320 mln, down from
prior outlook of $340-$350 mln
    ** It is also reducing new studio openings this year to
500-520 compared to prior guidance of 540-560
    ** Several analysts cut their PTs in wake of report,
including Jefferies and Evercore
    ** Avg rating among 10 analysts is "buy" and median PT is
$20 - LSEG
    ** In Jun, XPOF appointed former Yum Brands-owned  YUM.N 
Taco Bell chief Mark King as CEO
    ** In May, XPOF's former CEO Anthony Geisler resigned a week
after co removed and suspended him amid U.S. SEC probe disclosed
last Dec
    ** Through Thurs, XPOF shares up 32% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))