Xponential Fitness, Inc. Announces Divestiture Of STRIDE Fitness
Portfolio Pulse from Benzinga Newsdesk
Xponential Fitness, Inc. (NYSE:XPOF) has completed the divestiture of STRIDE Fitness to Stride Fitness Franchising, Inc., owned by Shaun Grove, President of Rumble Boxing. The move is part of Xponential's strategy to optimize its portfolio for profitable growth and long-term value creation. STRIDE Fitness represented less than 1% of Xponential's total studios, and the divestiture is not expected to materially impact 2024 revenues. Xponential is now searching for Grove's successor as President of Rumble Boxing, with Grove staying on until a replacement is found.
February 15, 2024 | 2:06 pm
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Xponential Fitness divests STRIDE Fitness, focusing on optimizing its brand portfolio for growth. The divestiture is not expected to materially impact 2024 revenues.
The divestiture of STRIDE Fitness by Xponential Fitness is part of its strategic portfolio optimization. Given that STRIDE represented less than 1% of Xponential's total studios, the financial impact of this divestiture on Xponential's 2024 revenues is expected to be minimal. The decision reflects a strategic move rather than a financial necessity, indicating a neutral short-term impact on XPOF's stock price. The company's focus on long-term value creation and portfolio optimization could be viewed positively by investors, but the immediate financial implications are limited.
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