HT15. How the transgender controversy affected Planet Fitness’ stock price?

Planet Fitness—a gym chain known for promoting a “Judgment Free Zone”—found itself at the center of controversy over its inclusive locker room policies. A video that went viral on social media triggered intense discussions about privacy, gender identity, and corporate responsibility. The fallout included public backlash and a reported dip in Planet Fitness’s stock price, reigniting an ongoing national conversation about inclusivity and policy enforcement in public spaces.

What Sparked the Controversy?

The controversy began when a woman at a Planet Fitness location in Fairbanks, Alaska, posted a video on social media expressing her disapproval of a transgender woman using the women’s locker room. The video, which included a photo of the trans woman shaving at the sink, went viral and drew polarized reactions across the internet.
Planet Fitness assigns staffer to assist transgender client in women's  locker room

In the video, the woman voiced her belief that transgender individuals assigned male at birth should not be allowed in female-designated spaces. However, her actions—specifically photographing another member without consent—violated Planet Fitness’s privacy policy.

Shortly after the video gained attention, Planet Fitness revoked the woman’s gym membership, citing a breach of its code of conduct. Meanwhile, the transgender member in question faced no disciplinary action, as she was not reported to have violated any rules.

Planet Fitness Responds

Planet Fitness released a statement reaffirming its longstanding policy of inclusion for transgender individuals. A spokesperson told Newsweek:

“Planet Fitness is committed to creating a welcoming environment for all members. Our gender identity policy allows individuals to use the locker room that best aligns with their self-reported gender identity.”

This policy is consistent with guidance from major civil rights organizations and has been in place for years. The company also made clear that recording fellow gym members or acting in bad faith would result in immediate disciplinary action, including the possibility of account termination.
Woman banned by Planet Fitness for photographing trans member vows to keep  fighting | FOX 9 Minneapolis-St. Paul

Public Backlash and Boycott Calls

Following the company’s decision, some conservative voices criticized Planet Fitness for what they saw as a disregard for women’s privacy. Online forums and social media pages began urging users to cancel their Planet Fitness memberships, using hashtags like #BoycottPlanetFitness.

This movement echoed a similar situation from 2015, when a Michigan woman had her membership revoked after complaining about a transgender person using the women’s locker room. At that time, Planet Fitness stood by its policies as well, emphasizing inclusivity and non-discrimination.

In 2025, however, social media amplification and political polarization have intensified these reactions. Several commentators argued that the company should offer more privacy-focused solutions, such as gender-neutral changing rooms or increased stall availability. Others supported Planet Fitness’s stance, praising the company for defending trans rights and member privacy.
Alleged Trans Woman Back In Planet Fitness Women's Locker Room

Impact on Planet Fitness Stock

In the days following the viral video, Planet Fitness’s stock price reportedly fell from around $66 to $56, representing a 15% drop over approximately 12 days. According to Newsweek, this decline resulted in a $400 million reduction in market capitalization, dropping the company’s value from $5.3 billion to $4.9 billion.

While it’s difficult to definitively link the stock drop to the controversy, the timing suggests a correlation between the negative publicity and investor confidence. Analysts noted that companies embroiled in social or political debates often experience short-term market fluctuations, especially when public sentiment shifts quickly.

It remains to be seen whether the stock will rebound once the controversy dies down or whether ongoing backlash will affect the company’s longer-term financial outlook.
Planet Fitness to open in vacated Conroe Kroger location

Corporate Policies and Legal Backing

Planet Fitness’s locker room policy aligns with guidelines from the Equal Employment Opportunity Commission (EEOC) and other civil rights agencies. These organizations have clarified that denying individuals access to facilities aligned with their gender identity may be considered discriminatory under federal laws in many contexts.

The company’s approach is also consistent with policies adopted by other major chains, including LA Fitness and 24 Hour Fitness, which have also implemented gender identity-inclusive policies.

Planet Fitness emphasizes that its rules are designed to protect the rights and safety of all members, regardless of their gender identity. The company has stated that any member behaving inappropriately—regardless of gender—will be subject to disciplinary action.
Planet Fitness hires new DEI-focused CEO amid controversy over transgender  locker room policy | Fox News

Social Media Reactions

Social media platforms like TikTok, Facebook, and X (formerly Twitter) have become arenas for the public debate over the locker room incident. Hashtags such as #TransRightsAreHumanRights and #PlanetFitnessBoycott trended simultaneously, reflecting the divide in public opinion.

Some users criticized the company for what they viewed as a lack of consideration for female members’ concerns, while others praised Planet Fitness for upholding inclusivity and member privacy rights.

Notably, transgender advocacy groups have come out in support of Planet Fitness, highlighting the importance of affirming spaces for trans individuals. They argue that policies like these are vital for ensuring safety, dignity, and access to essential services for marginalized communities.

What Is Gender Identity? - SACAP Global

The Bigger Picture

This controversy is part of a broader debate playing out across the United States regarding gender identity, public accommodations, and civil liberties. From school bathroom policies to corporate HR guidelines, organizations nationwide are having to balance inclusivity with privacy and public sentiment.

While Planet Fitness’s stance has drawn criticism from certain groups, it has also solidified the company’s reputation as a brand that values diversity, inclusion, and equal access. Whether this position will strengthen or weaken its market position in the long run will depend on evolving societal attitudes and consumer loyalty.

What Comes Next?

At this time, Planet Fitness has not announced any changes to its gender identity policy. However, the company may explore options such as:

  • Enhancing privacy measures in locker rooms.
  • Expanding gender-neutral facilities in new or renovated locations.
  • Hosting public education initiatives to clarify its policies and promote respectful dialogue.

Regardless of the final outcome, this incident illustrates how corporate values and public perception are deeply intertwined in today’s social media-driven environment. Companies must be prepared not only to stand by their principles but also to effectively communicate them in ways that foster understanding rather than division.

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