Peloton says latest spike in Covid-19 instances, lockdowns are boosting gross 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 that 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%.