Planet Fitness at $51.21 as gym spending rises

The evidence is showing up in the stocks. Planet Fitness, the most direct proxy for the gym boom, has been volatile, but it has also rebounded sharply from a brutal spring selloff. The shares closed at $51.21 on Aug. 6, more than 15% above their June 24 level of $53.86 and well above the $44.01 low reached in May, when trading volume exploded to 17.2 million shares. The stock is still far below its 200-day moving average of $78.65, which says investors remain cautious, but the recent bounce suggests the market is starting to price in a steadier membership story.

That matters because Planet Fitness lives and dies on consistency: recurring dues, franchised club growth and a brand that fits the budget-conscious, post-pandemic consumer who wants a social outlet without bar tabs. The company’s latest filing also highlights how important membership mix, pricing and net member growth are to same-club sales. If younger consumers continue swapping nights out for workouts, that could keep the runway open for clubs, equipment and low-cost access models.

The trend is not just good for gym operators. Lululemon’s shares closed at $124.73 on Aug. 6, up modestly from $123.03 two days earlier, while Dick’s Sporting Goods ended at $198.62. Both stocks have had their own rough patches, but they remain tied to a bigger secular theme: consumers buying into performance, wellness and athleisure as part of everyday life. That is a powerful shift for long-term investors because it spreads across apparel, footwear, accessories and equipment, not just one company or one quarter.

There is a catch, of course. A weaker economy can still crimp discretionary spending, and the latest consumer confidence reading from Adalytica.com points to fear even as consumer-spending sentiment sits at extreme greed. That split suggests households may be choosy, not carefree. In other words, they may cut back on expensive nights out before they cut back on a gym membership or a pair of running shoes.

The long-term takeaway is simple: if younger consumers keep treating fitness as a social identity rather than a chore, the winners are likely to be the brands that make wellness affordable, convenient and habit-forming. Planet Fitness, Lululemon and Dick’s all stand to benefit in different ways, but the bigger story is that the gym may be becoming the new bar for a generation that prefers compounding health over one-night spending. That is a trend worth watching, and for patient investors, worth owning through a diversified portfolio.