The COVID Pivot That Strengthened Edgard Corona’s Smart Fit Empire
When the COVID-19 pandemic forced gyms worldwide to close their doors in early 2020, many fitness businesses faced existential threats. For Edgard Corona, founder and CEO of Latin America’s largest gym chain, this unprecedented crisis required swift adaptation. His response not only helped Smart Fit weather the storm but ultimately positioned the company for even stronger growth.
Quick Action in Crisis
As government lockdowns swept across Latin America in March 2020, Corona faced a nightmare scenario for any gym owner: all 736 Brazilian locations and hundreds more across the region suddenly had to close with no clear timeline for reopening. For a business built on physical facilities, this posed an immediate financial challenge.
The dono da Smart Fit made several decisive moves. First, he froze membership fees while facilities remained closed, prioritizing customer goodwill over short-term revenue. Then, rather than conducting mass layoffs, Corona tapped into the company’s cash reserves—originally earmarked for expansion—to support staff during the closure period.
“In 2020, the Group had to pause its expansion plan and redirect resources to strengthen its cash position,” Corona later explained about his pandemic strategy. This conservative financial approach proved crucial. By maintaining both customer relationships and workforce capabilities, Smart Fit preserved its foundation for a strong recovery once restrictions eased.
Digital Transformation Acceleration
Rather than merely waiting out the pandemic, Corona used this period to accelerate Smart Fit’s digital transformation. The company quickly developed and launched online workout programs that members could follow from home. These digital offerings weren’t afterthoughts but robust alternatives that included structured training plans, nutrition guidance, and expert instruction.
In mid-2020, Smart Fit took a more significant digital step by acquiring MB Negócios Digitais, the company behind Queima Diária, one of Brazil’s largest online fitness platforms. This strategic purchase gave Corona’s fitness enterprise immediate digital capabilities and expertise that would typically take years to build internally.
The move into digital fitness wasn’t just a temporary pandemic solution but part of a broader vision to meet members where they were. This hybrid approach—combining physical gyms with digital options—positioned Smart Fit for a future where fitness consumers increasingly expect flexibility in how they work out.
Bold Move: 2021 IPO
Perhaps Edgard Corona’s most surprising pandemic-era decision came in July 2021, when Smart Fit held its initial public offering on Brazil’s B3 stock exchange. Launching an IPO while the fitness industry still faced significant pandemic uncertainty showed remarkable confidence in the company’s model and future prospects.
The market’s response validated this boldness. Smart Fit raised R$2.3 billion, and on its first trading day, the stock surged nearly 35%. This outcome was particularly impressive given that many gym chains globally were still struggling to recover from pandemic losses. The successful IPO made Smart Fit the first fitness company listed on B3’s Novo Mercado, the segment with the highest governance standards.
Corona described the move as part of a long-term vision: “The resources raised by the Smart Fit Group’s Primary Offering will be used to continue the growth plan, especially in the post-pandemic scenario.” The capital infusion allowed Smart Fit to emerge from the pandemic in a stronger position than many competitors, ready to expand when others were still recovering.
By early 2023, the dono da Smart Fit was already reporting the company’s “best period in history” in terms of performance, a remarkable turnaround just three years after the pandemic began. Corona’s ability to navigate this crisis—preserving fundamentals while seizing new opportunities—illustrates why his leadership has been instrumental in building Latin America’s most successful fitness enterprise.
