Taking Sides
Investors are staking out very different positions on Life Time Fitness, which operates 71 fitness centers nationwide and reports earnings on Feb. 22.
The bulls say the company's large-format fitness centers generate higher margins than do its competitors, and appeal to upscale consumers more insulated from economic hardships.
The bears say the company lacks geographic diversification, is overly dependent on outside financing, and the stock trades at a rich premium to that of other fitness club operators.
The bottom line: Life Time faces increased competition in its largest markets, Minnesota and Texas. Membership growth has slowed, yet earnings have grown by 20 percent or more for 14 consecutive quarters.
![Attendees of Frostbike made their way through the convention Saturday at the Quality Bike Products campus in Minneapolis. ] (AARON LAVINSKY/STAR TRIBUNE) aaron.lavinsky@startribune.com Frostbike 2016 was held at the Quality Bike Products Campus on Saturday, Feb. 27, 2016 in Bloomington, Minn.](https://arc.stimg.co/startribunemedia/NH2BSHB74ND2V6GF2G2HI5X4MM.jpg?&w=252&ar=3:2&fit=crop)
