News

Soho House Reports Disappointing Q3 Results

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4.6

Andrew R. Michaud

• November 10, 2023

Shares of Soho House experienced a decline in morning trading following the release of their third-quarter results, which fell short of Wall Street's expectations. The luxury club operator also projected a slowdown in member growth at its main clubs.

Stock Performance

In morning trading, the stock dropped 14% to $7.03, although it is still up 88% for the year.

Financial Results

For the third quarter, Soho House reported a 13% increase in revenue, reaching $301 million. However, this figure fell below the $306.2 million anticipated by analysts surveyed by FactSet. Additionally, the company's loss of 22 cents per share was wider than the nine cents per share loss that analysts had expected.

Future Membership Growth

Soho House revealed that it aims to have at least 210,000 members at its namesake clubs by the end of fiscal 2024. Based on the company's forecast for the upcoming fiscal year and the rest of this year, this would imply a year-over-year growth rate of approximately 9%. This projection represents a slowdown compared to the nearly 19% growth expected for this year.