Virus promotes home workouts by increasing peloton sales

Image copyright
Getty Images

The peloton, which won an early celebrity fanbase for its exercise bikes and remote workout classes, has seen an increase in demand during the epidemic.

The firm’s global membership base exceeded 3.1 million at the end of June, more than double a year earlier, as demand for in-home workouts at the gym increased due to the Kovid-19.

The jump in sign-up increased revenue to $ 607m (£ 474m), up 172% year-on-year.

But it has also disrupted supplies, leading to long waits for equipment.

The firm said it was slashing prices of its existing treadmill and bikes, bringing the bike price from $ 2,245 to $ 1,895 in an effort to make their products more accessible.

The move coincides with the launch of new, more expensive, same pieces of equipment.

But the firm, which for most of its sales relied on purchasing machines fitted with touchscreens, said it did not expect delivery to improve before the end of the year.

“Demand… remains strong and remains a member despite the weather conditions improving,” Chief Executive Officer John Foley said on Thursday after an analyst called on him to share his quarterly results.

  • Peloton: ‘It’s Borderline Addiction’
  • Peloton bike advertising ‘sexist’ and ‘dystopian’

Peloton said that the number of “connected fitness” customers who gain access to their remote classrooms through one of the firm’s machines jumped to more than 1.09 million at the end of June, from the same period last year 113% higher than that.

Those members are also working more – averaging more than 24 workouts per month, compared to 12 a year ago.

This increase led the firm to its first quarterly profit of $ 89m, compared to a loss of $ 47.4m the previous year.

Mr. Foley told analysts that he was not worried about the post-pandemic shrinking, given the opportunities for global expansion.

The peloton said it expected the number of subscribers to exceed 2 million in the next 12 months and forecast revenue for its next fiscal year of at least 3.5 billion.

The results shared by the firm exceeded analysts’ expectations, leading the shares to rise 7% in after-hours trading.