Q3 2024 Xponential Fitness Inc Earnings Call Transcript
Key Points
- Xponential Fitness Inc (XPOF) reported an 8% increase in North America run rate average unit volumes, driven by sales growth in scaled brands.
- The company opened 125 new studios globally in Q3, with a significant portion in North America, indicating strong expansion efforts.
- Xponential Fitness Inc (XPOF) achieved a 21% year-over-year increase in North American systemwide sales, primarily driven by a 5% same-store sales increase.
- The company is focusing on becoming a data-driven organization, aiming to optimize franchisee operations and improve member experiences through predictive analytics.
- Xponential Fitness Inc (XPOF) is actively working on expanding its international footprint, with successful operations in countries like Japan and Australia.
- The company is facing challenges with infrastructure and processes, which are struggling to keep pace with rapid growth.
- There is a need to shift from a sales-first to a marketing and operations-driven culture to better support franchisees.
- Xponential Fitness Inc (XPOF) reported a net loss of $18 million in the third quarter, attributed to increased litigation expenses and restructuring charges.
- The company experienced a decline in merchandise revenue by 23% year-over-year, attributed to efforts to reduce inventory levels.
- There were 49 global studio closures in the period, with expectations of closures trending at the higher end of the 3% to 5% range for the year.
Greetings and welcome to the Exponential Fitness inc third quarter, 2024 earnings conference call. At this time. All participants are in listen-only mode.
If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation even be placed into question two at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Avery want to maker investor relations. Please go ahead Avery.
Thank you operator. Good afternoon and thank you all for joining our conference call to discuss exponential fitness. Third quarter, 2024 financial results. I am joined by Mark King, Chief Executive Officer and John Malone, Chief Financial Officer Sarah Luna President will also be available for questions. A recording of this call will be posted in the investors section of our website at investor dot exponential dotcom.
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