Xponential Fitness gyms return to profit after increasing their sales by 58% in 2022
Xponential Fitness once again generated profits in 2022 that closed with record revenues. The American group made up of ten boutique studio chains earned 1.9 million dollars (1.8 million euros), in the last financial year. A result that contrasts with the red numbers of 18.8 million dollars (17.7 million euros) registered in 2021.
The company differentiates between the income of the headquarters and the billing generated by the entire network of franchised centers. Thus, the company closed 2022 with revenues of 245 million dollars (230 million euros), 58% more than in the previous year. Of course, taking into account the sales of the franchises in North America (of which the head office invoices a percentage of the income for royalties), revenue rose to 1,030 million dollars (969 million euros), 46% more than the previous year.
The reason that explains why Xponential Fitness managed to overcome its losses is the increase in its sales. “Double-digit growth that has continued into 2023. In fact, in January we achieved a new milestone, reaching 600,000 subscribers”, explained Anthony Geisler, CEO of Xponential Fitness.
This increase compensated the 23.6% increase in its operating expenses, up to 229 million dollars (215 million euros). More than half of this item was brought together by the administrative expenses derived from its IPO in 2021, which rose to 129 million dollars (121 million euros).
By line of business, 47% of the company’s turnover was generated by fees and entry fees paid by franchisees, which increased by 54%, up to 115.3 million dollars (108 million euros). The sale of equipment to the clubs increased by 92.4%, up to 43.4 million dollars (40.8 million euros) and represents 17.7% of the total business.
He merchandising It accounted for 27 million dollars (25.4 million euros), 34.4% more. Revenues from other services rose 59.6%, up to 38.7 million dollars (36.4 million euros), thus generating 15.8% of the total business of Xponential Fitness.
“During 2022 we opened a new studio every 17 hours and system-wide sales exceeded $1 billion for the first time,” Geisler said. The chain sold 1,026 franchise agreements and opened 511 studios in 2022.
Xponential Fitness operates in Spain, Saudi Arabia, Japan, South Korea, Austria, the Dominican Republic and the United States. In total, the group has ten chains in its portfolio: Club Pilates; Rumble; Cyclebar, which is specialized in indoor cycling; Stretchlab, whose classes focus on stretching; Row House, dedicated to indoor rowing; Pure Barre, specialized in barre classes; Yogasix, for the public who wants to do yoga; AKT, based on directed cardio and dance classes; Stride, focused on high intensity training (Hiit), and Body Fit Training.