By Dean Seal
Life Time Group Holdings hopes to boost revenue next year by driving more sales of its branded apparel and nutritional products to customers who are already looped into its communication and media channels, according to the company’s chief executive.
CEO Bahram Akradi told The Wall Street Journal that the fitness-center operator is targeting double-digit revenue growth in 2024 and plans to retool its digital channels to streamline the process of buying Life Time’s fitness-lifestyle products.
Life Time has digital messaging capabilities, a mobile app and even its own magazine, yet the company has yet to leverage those channels with its membership management system to move products, Akradi said Wednesday.
“We just haven’t really built the machine to market them correctly and make it easy for people to buy them,” he said.
Life Time is able to take these steps after spending the past few years recovering business lost during the Covid-19 pandemic, Akradi said. The company had initially hoped to launch its retail initiatives during the fourth quarter, when warm weather-oriented revenue drivers fade, but the roll out has been pushed to 2024.
“We have the customer base, we have the product and we have the engine,” Akradi said. “We just need to fine tune this.”
Earlier Wednesday, Life Time reported an 18% jump in third-quarter revenue to $585.2 million while earnings fell to four cents a share from 12 cents a share in the year-ago period.
Life Time expects $555 million to $565 million in revenue for the fourth quarter, up 19% from a year ago but below analyst projections for $576.6 million according to FactSet. Annual revenue is expected to come in at $2.21 billion to $2.22 billion, below a consensus estimate of $2.24 billion.
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