PLNT - Planet Fitness slips after negative mention in Wall Street Journal

Planet Fitness (PLNT) is given credit by The Wall Street Journal's Heard On The Street column for having a clever business model that has helped it to grow rapidly, but it is also highlighted that certain elements of the business backfired recently. The WSJ's Spencer Jakab explains: "The company made an apparent tactical error by drafting dues from members in March even as lockdown orders shut down all their U.S. gyms. Cancellations had to be in person or by letter even as gyms were closed, and members wary of unnecessary trips still can’t do so online or by phone even with gyms reopened. That infuriated those forced to move or who were financially pinched, judging by social-media posts. Membership went from 15.5 million in March to just 14 million at the end of October. The move also artificially flattered third-quarter results reported last month since those monthly revenues were credited

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Planet Fitness slips after negative mention in Wall Street Journal