Stationary Bike Juggernaut See’s 172% Rise in Sales, Strong Demand Should Continue into 2021
Peloton said Thursday its fiscal fourth-quarter sales surged 172%, as its high-tech stationary bike and treadmill became two of the hottest commodities for people looking to work out at home during the coronavirus pandemic.
The fitness equipment maker also offered Wall Street an eye-popping outlook for the current quarter and fiscal 2021, with sales of its bikes not expected to slow down anytime soon.
But that also means more strain on its supply chain. In a letter to shareholders, Peloton said it had expected demand to “moderate,” but a recent resurgence of Covid-19 cases has “perpetuated the imbalance of supply and demand.” It said it doesn’t expect to return to “normalized order-to-delivery windows” in the U.S. before the end of the fiscal second quarter.
Its shares were up nearly 8% in after-hours trading. KEEP READING