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Peloton’s sales are rising as the virus boosts home training

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Peloton, which gained a prominent following for its exercise bikes and remote workout courses early on, saw demand surge during the pandemic.

The company̵

7;s global membership base stood at 3.1 million at the end of June, more than double a year earlier as the gym closures due to Covid-19 increased demand for home workouts.

The rise in registrations increased revenue to $ 607 million (£ 474 million), 172% higher than the prior year.

But it also weighed on the offer and triggered long waiting times for devices.

The company announced plans to cut prices on its existing treadmill and bike and to cut the cost of the bike from $ 2,245 to $ 1,895 to improve access to its products.

The move coincided with the introduction of new, more expensive versions of the same equipment.

The company, which relies on the purchase of its touchscreen-equipped machines for most of its sales, doesn’t anticipate any improvement in delivery delays before the end of the year.

“Demand … remains strong and member engagement remains increased despite the improving weather and the gradual reopening,” CEO John Foley said on an analyst call after the company announced its quarterly results Thursday.

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Peloton said the number of Connected Fitness subscribers accessing the remote classes through one of the company’s machines rose to over 1.09 million by the end of June, an increase of 113% over the same period last year.

These members also exercise more – an average of more than 24 workouts per month compared to 12 a year ago.

The growth brought the company to its first quarterly profit of $ 89 million compared to a loss of $ 47.4 million last year.

Mr Foley told analysts he was not concerned that demand for the pandemic might wane, given the opportunities for global expansion.

Peloton expects the number of subscribers to exceed 2 million in the next 12 months and forecasts revenue of at least $ 3.5 billion for the next fiscal year.

The results shared by the company exceeded analysts’ expectations, causing stocks to rise 7% in over-the-counter trading.

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