Xponential (XPOF) Posts Robust 2023 Operating Highlights
Xponential Fitness, Inc. XPOF released its 2023 operating highlights, showcasing the company's resilience and consistent results.
XPOF recently organized its annual franchise convention, with more than 2,000 participants engaging in discussions on growth strategies, fostering brand awareness and officially introducing the newest brand, Lindora.
XPOF's dedicated customer base, positive visitation trends and the shift away from the company-owned transition studio strategy position it favorably for increased profitability in 2024.
North American Operating Highlights 2023
For the full year ending Dec 31, 2023, the company recorded significant achievements in its North American operations. With an expansion to 3,062 open studios and a global total of 6,255 licenses sold across 10 brands, it demonstrated substantial growth. XPOF successfully opened 557 new studios in 2023, up 9% from 2022 levels and meeting the top half of its 2023 guidance of 550-560.
Total members increased 21% year over year to 717,000 from 590,000 reported in 2022. Studio visits totaled 51.5 million, up 31% year over year and increasing from 39.2 million in 2022.
In terms of financial performance, the company registered 36% year over year growth in system-wide sales, reaching $1.40 billion compared with $1.03 billion reported in 2022. Notably, the reported figure surpassed the high end of the guidance range of $1.390 billion to $1.395 billion.
In 2023, the same-store sales growth was 16% compared with 25% reported in the prior year. The company achieved a fourth-quarter 2023 run-rate average unit volume (AUV) of $590,000, up from $522,000 reported in fourth-quarter 2022.
Price Performance
Image Source: Zacks Investment Research
Shares of XPOF have lost 26.9% in the past three months against the Zacks Leisure and Recreation Services industry’s 10.6% rise. Although the company’s shares have underperformed the industry, its accretive expansion strategies will help it gain traction in this high-cost environment in the upcoming period.
Zacks Rank & Key Picks
Xponential carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector:
Virco Mfg. Corporation VIRC sports a Zacks Rank #1 (Strong Buy). VIRC has a trailing four-quarter earnings surprise of 188.6% on average. VIRC’s shares have surged 153.5% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VIRC’s 2024 sales and earnings per share (EPS) indicates a rise of 15.7% and 32.4%, respectively, from the year-ago period’s levels.
Stride, Inc. LRN flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 78.1% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 10.8% and 34.7%, respectively, from the year-ago period’s levels.
Strategic Education, Inc. STRA flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 7.3% on average. Shares of STRA have increased 5.4% in the past year.
The Zacks Consensus Estimate for STRA’s 2024 sales and EPS indicates a rise of 5.7% and 26.8%, respectively, from the year-ago period’s levels.
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