We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Xponential (XPOF) to Expand Pure Barre and YogaSix With Sunpark
Read MoreHide Full Article
Xponential Fitness, Inc. (XPOF - Free Report) inked a Master Franchise Agreement with the multi-brand operator and global franchisor Sunpark Co. Ltd. to expand its Pure Barre and YogaSix brands in Japan.
This move adds to XPOF's growing presence in the Japanese market, marking the sixth and seventh brands in the portfolio, alongside Club Pilates, CycleBar, Rumble, AKT and StretchLab. Per the agreement, Sunpark is committed to opening a minimum of 50 franchised studios for Pure Barre and YogaSix as part of this strategic expansion.
The Master Franchise Agreement with Sunpark follows StretchLab's recent launch in Tokyo in July 2023. Sunpark, with substantial real estate and development expertise, is expected to boost the Xponential Fitness brand’s growth.
XPOF is optimistic and plans to launch Pure Barre and YogaSix in 2024. This new multi-brand relationship aligns Sunpark's successful expansion record in Japan and Asia with Xponential's extensive boutique fitness experience.
Pure Barre and YogaSix’s Footprint Expansion
The Pure Barre agreement marks the brand's first expansion into Asia and signifies the ongoing global expansion of Xponential Fitness brands. The company operates or is developing studios for its eight brands in 23 countries across North America, Europe, Asia, the Middle East and Australia. XPOF inked its first international agreement earlier in 2023 for Germany with the existing Master Franchisee of Club Pilates in the country. Globally, YogaSix has nearly 200 open studios, while Pure Barre boasts more than 640 open studios.
Xponential on Expansion Spree
Xponential is one of the largest global franchisors of boutique fitness brands and is witnessing robust demand for its brands outside of North America. The company’s growth durability is primarily backed by new studios opened by its franchisees along with additional business in the existing locations.
As of Sep 30, 2023, Xponential operated about 2,980 studios globally, with a total of 6,088 licenses sold across its 10 leading fitness brands. As of the third quarter of 2023, the company has franchise, master franchise and international expansion agreements in 23 countries globally. In the same quarter, the franchise revenues rallied 21% to $36.4 million year over year.
The company’s persistent expansion initiatives into new markets have been reflected in 1,000 studios obligated to open under its master franchise agreements.
Image Source: Zacks Investment Research
Shares of XPOF have lost 27.7% in the past six months compared with the Zacks Leisure and Recreation Services industry’s 7.2% decline. 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.
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 - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 87.3% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 29.4% on average. Shares of BVH have increased 192.9% in the past year.
The Zacks Consensus Estimate for BVH’s 2024 sales and EPS indicates a rise of 1.5% and 22.6%, respectively, from the year-ago period’s levels.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Xponential (XPOF) to Expand Pure Barre and YogaSix With Sunpark
Xponential Fitness, Inc. (XPOF - Free Report) inked a Master Franchise Agreement with the multi-brand operator and global franchisor Sunpark Co. Ltd. to expand its Pure Barre and YogaSix brands in Japan.
This move adds to XPOF's growing presence in the Japanese market, marking the sixth and seventh brands in the portfolio, alongside Club Pilates, CycleBar, Rumble, AKT and StretchLab. Per the agreement, Sunpark is committed to opening a minimum of 50 franchised studios for Pure Barre and YogaSix as part of this strategic expansion.
The Master Franchise Agreement with Sunpark follows StretchLab's recent launch in Tokyo in July 2023. Sunpark, with substantial real estate and development expertise, is expected to boost the Xponential Fitness brand’s growth.
XPOF is optimistic and plans to launch Pure Barre and YogaSix in 2024. This new multi-brand relationship aligns Sunpark's successful expansion record in Japan and Asia with Xponential's extensive boutique fitness experience.
Pure Barre and YogaSix’s Footprint Expansion
The Pure Barre agreement marks the brand's first expansion into Asia and signifies the ongoing global expansion of Xponential Fitness brands. The company operates or is developing studios for its eight brands in 23 countries across North America, Europe, Asia, the Middle East and Australia. XPOF inked its first international agreement earlier in 2023 for Germany with the existing Master Franchisee of Club Pilates in the country. Globally, YogaSix has nearly 200 open studios, while Pure Barre boasts more than 640 open studios.
Xponential on Expansion Spree
Xponential is one of the largest global franchisors of boutique fitness brands and is witnessing robust demand for its brands outside of North America. The company’s growth durability is primarily backed by new studios opened by its franchisees along with additional business in the existing locations.
As of Sep 30, 2023, Xponential operated about 2,980 studios globally, with a total of 6,088 licenses sold across its 10 leading fitness brands. As of the third quarter of 2023, the company has franchise, master franchise and international expansion agreements in 23 countries globally. In the same quarter, the franchise revenues rallied 21% to $36.4 million year over year.
The company’s persistent expansion initiatives into new markets have been reflected in 1,000 studios obligated to open under its master franchise agreements.
Image Source: Zacks Investment Research
Shares of XPOF have lost 27.7% in the past six months compared with the Zacks Leisure and Recreation Services industry’s 7.2% decline. 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 - Free Report) 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 143.3% 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 - Free Report) carries a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 44.3% on average. Shares of LRN have increased 87.3% in the past year.
The Zacks Consensus Estimate for LRN’s 2024 sales and EPS indicates a rise of 9.1% and 34.7%, respectively, from the year-ago period’s levels.
Bluegreen Vacations Holding Corporation flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 29.4% on average. Shares of BVH have increased 192.9% in the past year.
The Zacks Consensus Estimate for BVH’s 2024 sales and EPS indicates a rise of 1.5% and 22.6%, respectively, from the year-ago period’s levels.