Soho House & Co. Inc.’s stock SHCO tumbled 3.6% early Friday, after the operator of member clubs and hotels posted a wider-than-expected third-quarter loss and revenue that fell short of consensus. The London-based company said it had a net loss of $42.4 million, or 22 cents a share, for the quarter, narrower than the loss of $91.7 million, or 46 cents a share, posted in the year-earlier period. Revenue rose to $300.9 million from $266.0 million. The FactSet consensus was for a loss of 9 cents a share and revenue of $306.0 million. The company said it grew members to 225,252 in the quarter from 248,071 in the second quarter, or up 20.8% from the year-earlier period. The company opened Soho House Mexico in the September as the first in Latin America. It plans to open clubs in Portland and Sao Paulo, Brazil around the end of the year. The company now expects total members to be above 192,000 for all of fiscal 2023, up from prior guidance of 191,000. It expects revenue to $1.13 billion to $1.16 billion, compared with prior guidance of $1.12 billion to $1.19 billion. Soho House went public in 2021 at $14 a share. It closed Thursday at $8.15, but has gained 119% in the year to date, while the S&P 500 SPX has gained 13%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
