Peloton says recent spike in Covid-19 cases, lockdowns boosting sales

Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More people are turning to Peloton due to shelter-in-place orders because of the coronavirus (COVID-19).

Ezra Shaw | Getty Images

Peloton is seeing demand for its high-end exercise bikes and treadmills spike again, as Covid-19 cases are rising at a record clip in America, and consumers are hunkering down at home ahead of the winter months during the pandemic.

“The recent spikes in Covid cases and newly imposed lockdowns in some of our markets have had a significant positive impact on sales,” Peloton CFO Jill Woodworth told analysts Thursday.

The number of new daily coronavirus cases recorded in the U.S. surpassed 100,000 for the first time this week, according to a tally by Johns Hopkins University. In the U.S., some cities have imposed curfews or banned indoor dining, but there is a fear that if cases continue to rise at a brisk pace further restrictions will be imposed.

In Europe, the number of Covid cases is rising more rapidly on a per capita basis and lockdown measures have been imposed in France, Germany and England.

Peloton on Thursday said its first-quarter sales more than tripled, exceeding the company’s expectations, and it raised its revenue outlook for fiscal 2021. More consumers have been turning to its at-home workout products and live-streamed classes, as they ditch their gym memberships amidst the pandemic.

Peloton now expects this holiday quarter to be its first billion-dollar quarter for sales, while analysts had been calling for $939 million, based on a Refinitiv survey.

But the spike in demand, especially for its more expensive and newly released Bike+, means Peloton is hitting snags in its production facilities, and deliveries are being delayed. The company said Thursday it expects to be operating under supply constraints “for the foreseeable future.”

Peloton shares fell around 6% in after-hours trading, having skyrocketed more than 343% this year. The stock closed had Thursday up nearly 7%.

Source link




How business strategy impacts who’s nominated

Time Square, New York, April 8, 2016, Times Square is a major landmark of New York, brightly adorned with billboards and advertisements.William Rodrigues...

Meet Ford’s new pursuit-rated F-150 pickup for police

Ford touts its 2021 F - 150 Police Responder as "America's only purpose-built, pursuit-rated pickup truck.FordThe next time you get pulled over, it...

Chinese app Meitu buys millions worth of bitcoin and ethereum

The interface of the app Meitu is displayed on a mobile phone in Yichang, central China's Hubei province, Feb 22, 2021.Costfoto | Barcroft...

Earnings for apartment owners show the pain of urban flight

Pedestrians walk past commercial real estate in Manhattan.Michael Nagle | Bloomberg | Getty ImagesDecidedly weak quarterly earnings reports from major apartment real estate...