Peloton is Getting a Boost in Sales Due to Coronavirus

Exercise machine maker Peloton has cited that a recent spike in Covid-19 cases and lockdowns have helped boost sales for the company.

The company is seeing demand for its high-end exercise bikes and treadmills spike again as America is ravaged by more cases of the virus.

“The recent spikes in Covid cases and newly imposed lockdowns … have had a significant positive impact on sales,” Peloton CFO Jill Woodworth said.

It was this week that the number of cases daily in the U.S. passed 100,000 for the very first time, at least according to Johns Hopkins University. As more people fear that further restrictions will be imposed, they have been turning to exercise equipment for the home. More consumers have been turning to Peloton’s at-home workout products and live-streamed classes.

Peloton revealed this week that its first-quarter sales more than tripled, exceeding the company’s expectations. The company also raised its revenue outlook for fiscal 2021.

Looking ahead at this holiday quarter, Peloton expects it to be its first billion-dollar quarter for sales, while analysts had been calling for $939 million, based on a Refinitiv survey.
Unfortunately with demand heightened, the company said Thursday it expects to be operating under supply constraints “for the foreseeable future.”

Peloton announced a new partnership with Chase earlier this month. Woodworth said on the earnings call, “This is a first-of-its-kind arrangement for Peloton. Chase will offer up to $60 in statement credits toward Peloton subscriptions for Chase Sapphire Preferred Card holders and $120 in statement credits for Chase Sapphire Reserve Card members through December 2021.”

She added, “We are very excited to leverage the Chase platform to further build Peloton brand awareness while offering substantial benefits to our mutual member base. We hope that this partnership continues to drive awareness of the Peloton App, incremental Digital Subscribers, and ultimately, more Connected Fitness Product sales over time. Lastly, to our Peloton team members, thank you. Rapidly scaling a business during a global pandemic is difficult.”

Peloton shares fell around 6% in after-hours trading on Thursday. In 2020 shares have gained more than 343%.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.