IRVINE, Calif. - Xponential Fitness, Inc. (NYSE: XPOF), a global franchisor of boutique health and wellness brands, announced the appointment of Brenda Morris as interim Chief Executive Officer, effective immediately. The decision follows the Board of Directors' removal of Anthony Geisler from his CEO duties, also effective immediately. The company is facing an investigation by the United States Attorney's Office for the Central District of California, in addition to a previously disclosed probe by the Securities and Exchange Commission (SEC).
Morris, who has been a member of Xponential's Board since 2019, brings over 35 years of experience in finance, accounting, and operations to her new role. She is currently a partner at CSuite Financial Partners and has held leadership roles at several companies, including Apex Parks Group, Hot Topic, Inc., and 5.11 Tactical. Morris also serves on the boards of Boot Barn (NYSE:BOOT) Holdings, Inc. and iHerb.com.
The Board has expressed confidence in Morris's ability to lead the company, citing her deep involvement and understanding of Xponential's mission and growth trajectory. In her statement, Morris emphasized her commitment to enhancing the company's franchise model and expanding its studio presence.
Chelsea Grayson has been appointed as the Lead Independent Director of the Board, and the Board has formed a Special Committee of Directors to investigate the matters related to the investigations. The Board has also engaged an executive search firm to assist with CEO succession planning.
Despite the leadership changes and ongoing investigations, Xponential has reaffirmed its full-year 2024 guidance, initially announced on May 2, 2024, alongside its first quarter financial results.
Xponential Fitness operates a platform of ten brands across various fitness and wellness verticals. The company's mission focuses on making health and wellness accessible to everyone, with a strong presence in the U.S. and international markets through franchise and master franchise agreements.
This article is based on a press release statement from Xponential Fitness, Inc.
InvestingPro Insights
In the midst of leadership transitions and regulatory scrutiny, Xponential Fitness, Inc. (NYSE: XPOF) has displayed financial resilience with a market capitalization of $576.86 million. The company's gross profit margin stands out at an impressive 69.61% for the last twelve months as of Q1 2024, indicating efficiency in its operations and a strong command over its cost structure.
One of the key InvestingPro Tips highlights that XPOF's management has been actively buying back shares, signaling confidence in the company's value proposition and future prospects. Moreover, analysts foresee a profitable year ahead for the company, which is corroborated by its recent profitability over the last twelve months. Nevertheless, investors should note that 5 analysts have revised their earnings expectations downwards for the upcoming period, which could suggest a more cautious outlook on the company's near-term performance.
When it comes to valuation, XPOF is trading at a low earnings multiple, with a P/E ratio of 5.4, potentially indicating an undervaluation compared to industry peers. For those seeking more in-depth analysis, InvestingPro provides additional tips, including insights on stock volatility and price trends. With 9 more InvestingPro Tips available, investors can deepen their understanding of XPOF's financial health and market position. To access these insights, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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