Planet Fitness stock plunges 30% after company slashes guidance, cancels planned price hikes

People work out at a Planet Fitness in Alexandria, Virginia, on Jan. 8, 2024. Leah Millis | Reuters Shares of Planet Fitness plunged more than 30% Thursday after the company reported a drag on sign-ups and trimmed its guidance. The stock was having its worst day ever Thursday, as of midday trading. Even though the fitness company saw 21.9% revenue growth in its first fiscal quarter and same club sales increased by 3.5%, CEO Colleen Keating said the company saw a "slower than expected start from a net member growth perspective." "As a result, we are sharpening our marketing to prioritize capturing demand and driving net member growth," Keating said in a statement. "Additionally, we are pausing the planned national Black Card price increase pending a broader pricing review." The first fiscal quarter is usually the company's peak sign-up period. Keating said "internal and external headwinds" dealt a blow to the company's performance. Planet Fitness cut its revenue growth projection to 7% from a previous estimate of 9%. It also now expects same club sales of just 1%, compared with previous expectations of 4% to 5%, and adjusted net income to decrease 2%, compared with a previous expected increase of between 4% and 5%. On a call with analysts Thursday, Keating said four factors affected the company's first-quarter performance: a lack of resonance from marketing, competition in some markets, bad weather conditions and macroeconomic pressures. …