Peloton stated the latest bans on Covid-19 circumstances are boosting gross sales
Cari Gundee rides her peloton exercise bike at her home in San Anselmo, California on April 6, 2020. Due to the coronavirus (COVID-19), more and more people are turning to Peloton.
Ezra Shaw | Getty Images
Peloton sees another surge in demand for high-end exercise bikes and treadmills as Covid-19 cases in America soar and consumers settle at home before the winter months during the pandemic.
"The recent spikes in Covid cases and the 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 reported daily in the US topped 100,000 for the first time this week, according to a record by Johns Hopkins University. In the United States, some cities have imposed curfews or banned eating indoors. However, there are fears that further restrictions will be imposed if cases continue to increase rapidly.
In Europe, the number of Covid cases per capita is increasing faster and lockdown measures have been imposed in France, Germany and England.
Peloton announced Thursday that first-quarter sales more than tripled, exceeding the company's expectations, and raised sales prospects for fiscal 2021 gym membership amid the pandemic.
Peloton now expects this vacation quarter to be the first billion dollar quarter for revenue, while analysts asked for $ 939 million based on a refinitive poll.
However, increasing demand, especially for the more expensive and newly released Bike +, means that Peloton is facing problems at its manufacturing facilities and deliveries are being delayed. The company announced on Thursday that it is expected to operate under delivery bottlenecks "for the foreseeable future".
Peloton stock fell roughly 6% after the close of trading after rising more than 343% this year. The stock closed nearly 7% on Thursday.