Proactive Investors - Soho House & Co (NYSE:SHCO) has reported a bigger-than-expected third-quarter loss, sending its shares lower in Friday premarket trading.
The London-based members-only hotels and clubs operator said in a statement that total members swelled by close to 21% year-over-year to 255,252 in the quarter to October 1, 2023.
The membership waitlist now sits at approximately 98,000, an all-time high, and retention rates continue around pre-pandemic levels, it added.
The company reported a 13% rise in total revenues to $301 million for the quarter, below the $307 consensus estimate of analysts, according to Zacks investment research.
Its net loss per share more than halved from $0.46 to $0.22 but was still twice the $0.11 expected by analysts.
“This has been another quarter of strong execution against our strategic objectives. Adjusted EBITDA (underlying earnings) more than doubled year-on-year, supported by 14% margins. Total revenues increased by 13% year-on-year, with continued strong growth in recurring membership revenues,” CEO Andrew Carnie commented.
“We welcomed 8,000 net new members in the quarter, inclusive of the very successful opening of Soho House Mexico City.”
After opening in Mexico City in September 2023, the company said it plans to open in Portland, Oregon, and Sao Paulo, Brazil, around the end of the year.
The company has guided for full-year total revenues of between $1.13 billion and $1.16 billion.
Ahead of the opening bell, Soho House’s shares were down 8% at $7.50.