Shares of Irvine-based Xponential Fitness Inc. (NYSE: XPOF) dropped 14% to $14.57 during after-hours trading following the fitness franchisor’s adjustments to its 2024 forecast.
Xponential reported second-quarter revenue fell 1% to $76.5 million and a net loss of $13.7 million, or 29 cents per basic share.
Analysts were estimating second-quarter earnings of 23 cents per share and revenue growth of 8.1% to $83.6 million for Xponential.
“We saw some of the same retail softness that other consumer companies experienced during the second quarter,” Chief Financial Officer John Meloun said in a statement.
Considering the Q2 shortfall, Xponential lowered its expected gross new studio openings to the range of 500 to 520, showing an 8% decrease compared to 2023. Its outlook for revenue decreased to a range of $310 million to $320 million compared to an earlier guidance of $340 million to $350 million.
“When taken together with the effects of our leadership transition and previously announced regulatory investigations, it makes sense to temper elements of our prior outlook,” Meloun added.
Xponential currently has a market cap of $817 million. The company in July appointed Mark King, former chief executive of Taco Bell, as CEO following Founder Anthony Geisler’s departure in May.
