Peloton (NASDAQ:PTON) 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 New York-based 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.
It swung to a profit of $89.1 million, or 27 cents per share, compared with a loss of $47.4 million, or $2.07 per share, a year earlier. Its earnings per share came in 17 cents ahead of analysts’ expectations.
Its sales skyrocketed to $607.1 million from $223.3 million a year earlier, topping a forecast for $582.5 million. Part of that increase stemmed from a spike in its apparel business, it said, at a time when many clothing companies are struggling but workout apparel is flying off shelves.
Peloton said it ended the quarter with more than 1.09 million connected fitness subscribers, up 113% from a year earlier, and roughly 3.1 million members in total, including those who only pay for its digital subscription.
PTON shares hiked $7.11, or 8.1%, to $75.87.
