Planet Fitness Tumbles on Report of Potential Virus Exposure

(Bloomberg) -- Planet Fitness Inc. skidded as much as 6.3% following a news report that more than 200 people may have been exposed to the coronavirus at a West Virginia location of the gym chain.

A client at the Planet Fitness gym in Morgantown tested positive for the virus, raising the possibility that patrons were exposed on June 24, said Mary Wade Burnside, a spokeswoman for the Monongalia County Health Department. Pittsburgh TV station KDKA reported the exposure earlier Monday.

Planet Fitness has been communicating with the local health department, a spokeswoman said in an emailed statement.

“Out of an abundance of caution, the club is temporarily closed for deep cleaning and we are not aware of any additional members or team members reporting symptoms at this time,” said the spokeswoman, McCall Gosselin. “We will continue to take every necessary precaution to ensure the safety of our community.”

The news is another hiccup in a tense reopening of businesses around the country after coronavirus lockdowns. Several states in the South and Southwest are experiencing rapid rises in Covid-19 cases, although West Virginia hasn’t had a major new outbreak.

The market reaction was “overblown,” Jefferies analyst Randal Konik said in a note. He said he worked out at a Planet Fitness gym in New Hampshire recently and found it clean and with appropriate social distancing measures in place.

“We believe it is likely that the company’s prioritization of cleanliness and physical distancing protocols will lead not only to continual traffic improvement, but also to share gains,” Konik said.

Planet Fitness shares lost as much as $3.88 to $57.74 in New York trading Monday, before moderating the decline. The stock was down 17% this year through June 26.

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