Planet Fitness membership losses 'significant' after transgender situation

Planet Fitness experienced a significant drop in membership sign-ups and cut its sales and profit forecasts following a controversial incident at its Fairbanks, Alaska location, where a transgender customer was allowed to use the women's locker room. This decision led to widespread media attention and social backlash, particularly after member Patricia Silva posted a video voicing her concerns. The company reported a decrease in website traffic and an 8% increase in members year-over-year, which was below expectations.

In response to the financial impact and ongoing controversy, Planet Fitness announced a 50% price increase for new members, marking the first hike since 1998. This move is part of a broader strategy to improve margins despite the incident's negative effect on membership dynamics. The company continues to uphold its policy allowing individuals to use facilities aligning with their self-reported gender identity, amidst national debates and threats.