Life Time (US:LTH) CNBC·2026-02-28 13:00Core Insights - The earnings reports from Life Time Group Holdings and Planet Fitness indicate strong growth but reveal a diverging trend in consumer spending based on income levels [3][4] Group 1: Life Time Group Holdings - Life Time reported a 12.3% year-over-year increase in total revenue, reaching $745.1 million, driven by affluent consumers spending on health and wellness [5][6] - Membership dues were increased by approximately $10 to $30 per member, yet demand continued to rise, with in-center spending exceeding $191 million in Q4 [6][8] - The average revenue per center membership rose by 10.8% to $882, indicating a highly engaged membership model [8][9] Group 2: Planet Fitness - Planet Fitness added 1.1 million new members in 2025 and reported double-digit revenue growth, but its 2026 revenue growth outlook of 9% fell short of Wall Street expectations [10][11] - The company experienced a higher-than-expected cancel rate and attributed recent join trends to adverse weather conditions, although it remains optimistic about future growth [12][11] - Analysts expressed skepticism regarding the company's guidance, highlighting a credibility challenge and uncertainty about consumer spending capacity [13][17] Group 3: Consumer Spending Trends - The results from both companies illustrate a K-shaped economy, where higher-income consumers continue to spend freely, while lower-income consumers show signs of strain [14][16] - This trend is not isolated to the fitness industry, as it is reflected across various sectors, with luxury offerings gaining traction among affluent consumers [15][14] - The performance of Planet Fitness in upcoming quarters may indicate the discretionary spending capacity of lower- and middle-income consumers [16]