Life Time Group Holdings is focusing on driving sales of its branded apparel and nutritional products to enhance revenue in 2024. CEO Bahram Akradi stated that the fitness-center operator aims for double-digit revenue growth and intends to optimize its digital channels for a seamless purchasing experience.
While Life Time already possesses digital messaging capabilities, a mobile app, and its own magazine, it has not fully capitalized on these channels through its membership management system to promote product sales. Akradi acknowledged that they have yet to construct an effective marketing machine that makes it easy for customers to buy Life Time’s fitness-lifestyle products.
With the recovery of the business following the Covid-19 pandemic, Life Time is now able to take these crucial steps. Initially planned for the fourth quarter, the launch of their retail initiatives has been postponed to 2024.
Akradi expressed confidence in their customer base, product offerings, and strategic capabilities, stating that they simply need to refine their approach.
In its recent report, Life Time revealed an 18% increase in third-quarter revenue, reaching $585.2 million. However, earnings declined from 12 cents a share to four cents a share compared to the same period last year.
For the fourth quarter, Life Time expects revenue to range from $555 million to $565 million, reflecting a 19% YoY growth. However, this falls short of analyst projections of $576.6 million according to FactSet. The projected annual revenue stands at $2.21 billion to $2.22 billion, slightly below the consensus estimate of $2.24 billion.