Gyms Are the Unlikely Winners of U.K. Post-Covid Reopening
- Investors, betting on revival, are buying gym stocks and bonds
- Fitness focus driving more people to sign up at health clubs
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Packing sweaty, heavy-breathing strangers into enclosed spaces may seem like a disastrous business model for the post-pandemic era. But you wouldn’t know it from the love investors are showing shares and bonds of gyms in the U.K.
Gym Group Plc’s stock has jumped about 28% this year, recouping almost all its losses from Covid-19 closures. In the bond market, investors have piled into high-yield debt offerings from the budget chain Pure Gym PLC and the more upmarket David Lloyd. While the gains are in line with the broader market recovery, gym operators are outperforming companies well placed to ride any economic rebound from the reopening.