Xponential Fitness sees 'zero turbulence' from current macroeconomic environment

© Reuters.

Xponential Fitness, Inc. (NYSE:XPOF), the franchise group of boutique fitness brands, said at Baird's Global Consumer, Technology, and Services conference on Tuesday that it is seeing "zero turbulence" from the current uncertain macroeconomic climate.

The company's chief executive Anthony Geisler told listeners the firm isn't seeing any trade downs, while they see no headwinds in membership freezes and cancellations.

"There's really tailwinds from two major things," stated Geisler. He noted that one of the tailwinds was the company choosing to stay in business as long as they were legally allowed when COVID happened and opened as soon as they were legally allowed to.

He added that many competitors didn't, and XPOF "gained market share in those situations." As a result, Geisler said business has been "very predictable, very stable."

The company is also "very comfortable" with its outlook for the year and that recession rumors are not affecting the business. Geisler acknowledged that while there must be some headwinds, they are hard for the company to see as all of XPOF's KPIs are at all-time highs.

"We're not naive to the macro," continued Geisler. However, the firm just isn't seeing it, he said, explaining that the type of consumer the company's boutique fitness brands attract has been less impacted by the current environment.

Later in the conference, XPOF told investors that it is "very bullish" on the second half of the year due to systemwide and same-store sales remaining strong and demand not yet declining.

XPOF shares are up 1.5% at the time of writing on Tuesday.