Soho House & Co. Inc. reported third quarter revenue that fell short of analyst expectations, even as membership count benefited from an extensive wait-list of wealthy consumers ready to spend.
The operator of members-only luxury hotels and clubs posted revenue of $300.96 million for the quarter ended Oct. 1, according to a statement Friday, missing the average analyst estimate of $307 million.
Soho House fell about 14%. The stock saw record gains this year, as shares had more than doubled through Thursday.
“While overall revenue in the quarter is very healthy, it is also worth calling out the bad weather we had through the summer did have an impact on our houses’ performance, particularly given the number of outdoor spaces that we typically get strong traffic across the warmer months,” Chief Executive Officer Andrew Carnie said in an earnings call.
Total members grew 20.8% year-over-year to 255,252. The wait-list currently contains an all-time high of about 98,000 hopefuls, and retention rates remain around pre-pandemic levels. The London-based company also narrowed its forecast for 2023 revenue to a range of $1.13 billion to $1.16 billion.
Soho House opened its first Latin American location, in Mexico City, in September. It’s planning to open locations in Portland, Oregon and Sao Paulo by the end of the year.
