Planet Fitness (PLNT – Get Report) has had a fantastic year.
The stock is up nearly 93% in the past year.
CEO Chris Rondeau weighed in on why the stock is doing so well, the company’s partnership with Kohl’s and why he’s not worried about a possible recession.
The Kohl’s (KSS – Get Report) partnership was announced back in March. Rondeau broke down what the partnership is.
“So Kohl’s boxes, they are about 70,000 square feet and then right-sizing the stores, some of them, and then going down to 15,000 square feet. And they actually giving us 20,000 square feet right next door to them with our own storefront– like a strip mall,” Rondeau explained.
In fact, Jim Cramer has talked extensively about Planet Fitness’s deal with Kohl’s since it was announced. During his May conference call, he told members why he liked Planet Fitness. And, back in April, he went more in-depth about the deal.
Want to learn more? You can sign up for Jim Cramer’s investing club, Action Alerts Plus to read more about the partnership and why Cramer and his team like it.
But what about a possible recession? Planet Fitness, which went public in 2015, hasn’t been through a recession as a public company. But Rondeau said that that shouldn’t matter.
In fact, Rondeau believes that an economic downturn could benefit Planet Fitness.
“Yeah, first, we’ve had over 11 years and positive same-store sales. So we’ve been through different administrations, different economic ups, and downs. Think about fitness or wellness in general, people are generally going to be more healthy I think when the economy goes it goes bad and you’re not going to give it up when the economy goes bad. I think it might just more cost-conscious when you’re gonna work out. So I think that’s a great opportunity for [Planet Fitness,” Rondeau explained.
Ask Cramer | Get Answers to Your Most Pressing Market Questions
Source link Planet Fitness