OLD Media News

Peloton posts strong Q1 results

Peloton reportes strong revenues and a profit for the first quarter of its financial year, expecting the trend to continue.

Jeremy C. Owens reported the news for MarketWatch:

Peloton PTON, +6.77% on Thursday reported fiscal first-quarter earnings of $69.3 million, or 20 cents a share, after posting a loss of $1.29 a share a year ago. The interactive exercise-equipment company more than tripled sales to $757.9 million from $228 million in the same quarter last year. Analysts on average expected earnings of 11 cents a share on sales of $735 million, according to FactSet.

CNBC’s Lauren Thomas noted:

The company has been a huge beneficiary of more people staying at home in 2020. But with such heightened demand for its products, Peloton has struggled to keep up. Customers have also reported delayed shipments and poor service. The company said Thursday it expects to be operating under supply constraints “for the foreseeable future.”

Bloomberg’s Mark Gurman wrote:

Chief Executive Officer John Foley pledged to fix the issues, saying the company is spending money to improve shipping, including on faster air service, and will more clearly label delivery wait times for products on its website. The company is also expanding the customer service team, he said on a conference call after Peloton released its results.

The shipping expenses and effort to improve its supply chain will crimp gross margins in the current quarter, executives said on the call. Demand for its new Bike+ is exceeding expectations, but the company is unlikely to reach its goal of two-week delivery until next quarter, executives said.

Irina Slav

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