...January 14, 2025 We expect the expansion of Fitness International's Club Studio offerings will continue to resonate with consumers and support low-single-digit percent revenue growth through 2026. The company will increase its Club Studio locations over the next several years to contend with the rise of boutique studios and increased competition. We believe Club Studio's unique offering of multiple boutique studio classes and high-end health club amenities all under one roof will resonate with higher-end fitness consumers and fitness enthusiasts. The rise of boutique studios and no-frills, low-cost clubs present the greatest risk to member retention in mid-tier clubs in the long term. This is because members may choose budget- friendly alternatives with fewer services that still satisfy fitness needs, a targeted fitness option, or both. In response to this highly competitive industry, the company will likely invest further in its LA Fitness locations and offer increased ancillary services...
