BREAKING NEWS Little Falls, N.Y. -- Multiple fire departments are on the scene of a structure fire in the city of Little Falls. Full Story
STREAMING NOW: Watch Now

Peloton sales surge 172% as pandemic bolsters home fitness industry

William Lynch, president and director of Peloton, says the pandemic 'has been tailwinds for us" and thinks the home fitness experience "wins long term."

Posted: Sep 12, 2020 10:15 AM


For Peloton, the pandemic has been profitable. The at-home fitness company announced its first-ever quarterly profit, which was bolstered by a 172% surge in sales and more than 1 million people subscribing to its streaming classes.

Peloton has seen its fortunes soar this year because of the virus. Home-bound customers have been stocking up on Peloton's line of stationary bikes and treadmills in recent months and the trend doesn't appear to be fading, according to the company's outlook.

The better-than-expected fiscal fourth-quarter earnings sent Peloton's stock 6% higher in early trading. Shares are up more than 220% this year.

However, the increase in demand has also resulted in long production and delivery times. Peloton said while it expects demand to "moderate," the pandemic has "perpetuated the imbalance of supply and demand in many geographies, causing continued elongated order-to-delivery windows for our customers."

Peloton doesn't expect shorter delivery windows until at least next year.

But as for the people who do have their bikes and treadmills in hand, there's proof they're hooked: Peloton said the average number of monthly workouts has doubled in the past year to 25 classes per subscriber. The company offers a variety of classes beyond cycling, including core, running and weight lifting.

During the beginning of the pandemic, Peloton offered new subscribers of its app a three-month free trial subscription. People are sticking around, and are still paying the $12.99 monthly fee. The churn rate in the quarter was just 0.52%, meaning few people are unsubscribing once the pay period kicks in.

Peloton announced this week its cutting the price of its most popular bike by 15% and introduced a higher-priced bike. The price of its treadmill remains $4,295, but the company is adding a lower-priced treadmill next year.

New York Coronavirus Cases

County data is updated nightly.

Cases: 2108510

Reported Deaths: 53522
CountyCasesDeaths
Kings28043910447
Queens2771309949
Suffolk2008953399
Nassau1835453174
Bronx1833236585
New York1381274497
Westchester1296002286
Erie895411803
Richmond749181839
Monroe688791110
Orange48281843
Rockland46924963
Onondaga38888677
Dutchess29460445
Albany24687355
Oneida22590513
Niagara20027371
Broome18607366
Saratoga15352168
Ulster13897257
Schenectady13190205
Rensselaer11222142
Putnam1060492
Chautauqua8948144
Chemung7754135
Oswego761591
Ontario740293
Steuben6946144
Sullivan667075
St. Lawrence662896
Cayuga633692
Jefferson612268
Wayne577570
Cattaraugus571891
Genesee5435124
Herkimer5182109
Clinton483533
Madison456089
Livingston451760
Fulton442091
Tompkins434452
Montgomery4254125
Columbia4061104
Cortland391962
Tioga382763
Warren365857
Wyoming358053
Allegany355587
Chenango349576
Otsego346047
Greene340279
Washington315955
Orleans311883
Lewis280536
Franklin256112
Delaware237738
Seneca200956
Schoharie169217
Essex159226
Yates117826
Schuyler107014
Hamilton3132
Unassigned9214
Out of NY0247
Utica
Partly Cloudy
67° wxIcon
Hi: 77° Lo: 57°
Feels Like: 67°
Oneonta
Partly Cloudy
65° wxIcon
Hi: 74° Lo: 57°
Feels Like: 65°
Herkimer
Partly Cloudy
67° wxIcon
Hi: 78° Lo: 58°
Feels Like: 67°
Old Forge
Partly Cloudy
67° wxIcon
Hi: 74° Lo: 54°
Feels Like: 67°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Enchanted Forest Water Safari Summer Fun Giveaway
Senior Send-Off brought to you by Herkimer College
18 Facets of Summer Photo Contest brought to you by Herkimer Diamond Mines
Looking for work or looking to hire? Check out the WKTV Job Fair!
Alivana Ready for Summer Giveaway
Saluting Those Who Are Proud 2 Serve