Xponential Fitness Q2 Earnings Call Highlights

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Xponential Fitness (NYSE:XPOF) reported second-quarter results that fell beneath its interior expectations, prompting the boutique fittingness franchisor to little its full-year outlook arsenic same-store income declined, merchandise operations remained pressured and the institution continued to put successful paid selling and integer initiatives.

Chief Executive Officer Mike Nuzzo said the institution is shifting its accent from the portion enlargement and marque improvement that characterized its anterior maturation toward improving integrated growth, franchisee economics, operating execution and consistency successful the subordinate experience.

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"Our nonsubjective is straightforward," Nuzzo said. "Build a healthier, much productive franchise strategy that delivers sustainable rank maturation and semipermanent worth creation."

Studio Growth Continues, Though Same-Store Sales Decline

Xponential ended the 2nd 4th with 3,165 unfastened studios globally. The institution opened 67 gross caller studios during the quarter, including 47 successful North America and 20 internationally, portion 39 studios closed. Net portion maturation was 16 domestically and 12 internationally during the quarter. Year to date, the institution added 39 nett home studios and 29 nett planetary studios.

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The institution sold 53 licenses globally successful the quarter, including 43 internationally and 10 successful North America. As of June 30, Xponential had much than 690 North American licenses contractually obligated to open, on with 730 planetary maestro franchise obligations.