Life Time Group shares plummeted 15% Wednesday after the company's third-quarter results revealed higher spending to boost the premium member experience.
The cost of running its fitness centers, including new and ramping locations, rose 8.2% year over year during the quarter to $319.4 million, the company said.
The program changes are an attempt to keep Life Time's affluent customer base satisfied as prices rise across the board and many consumers increasingly value premium offerings.
Life Time increased its prices at many of its locations in recent years, though pricing varies by market.
"We aren't taking advantage of all the different connections we have and all the different programs we have, so there is essential work being done to systematize all of that."
Persons:
Bahram Akradi, —, Akradi
Organizations:
Time Group, Lifetime