Fitness Giant Stock In Free-Fall After Public Outcry
Planet Fitness faced a significant drop in its stock value this week following widespread attention to the company’s decision to revoke the membership of a Christian woman who raised concerns about a person, self-identifying as “queer,” being permitted in the women’s locker room.
This recent decline in stock value isn’t the first for the company. Earlier in the month, Patricia Silva’s social media post garnered attention after she reported her Planet Fitness membership being revoked due to her objection to a man shaving in the women’s locker room. Silva, in her video account, claimed a 12-year-old girl was present with only a towel while the man was shaving. The fallout from this incident saw Planet Fitness’ stock plummet by almost 8% on Tuesday, dropping from a monthly high of $66.92 on March 7 to a low of $55.46. However, the company’s stock has been on a downward trajectory since January, opening at $72.90 at the beginning of the year, with consistent declines through January to March.
While the controversy surrounding Planet Fitness’ policy of allowing individuals to use locker rooms based on their gender identity may have contributed to the stock drop, other factors could also be at play. Reports suggest that gyms like Planet Fitness didn’t see the expected increase in traffic in January, typically a busy period for the industry in the U.S. Weather conditions and attempts to increase prices may have impacted signups adversely.
Analysts have also pointed out that Planet Fitness may have relied too heavily on promotional offers for growth, with a temporary pause in testing higher prices indicating potential setbacks in the company’s advertising strategies. Meanwhile, there seems to be a growing investment trend in budget-friendly gyms, as noted by industry experts.
In a subsequent update, Silva thanked Planet Fitness staff for canceling her membership, reiterating her discomfort with the presence of a male individual in the women’s locker room. Despite the company’s explanation citing a violation of locker room privacy policies, Silva expressed her frustration, urging other women to speak out against such incidents.