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Peloton Q4 sales up 172% as demand surge continues

Published September 11, 2020

NEW YORK (BRAIN) — Peloton's sales surged in the final quarter of its fiscal year, which ended June 30. Although the stationary bike and treadmill company said it had expected sales to moderate in the quarter, they were up 172%, straining its supply chain. Peloton said it doesn't expect to get back to "normalized order-to-delivery windows" until at least the end of its fiscal second quarter.

Peloton's shares were up nearly 8% in after-hours trading Thursday.

Peloton said its average monthly churn rate for subscription memberships was just 0.75% in the final quarter; it predicted churn for the full fiscal year 2021 will be less than 1%. 

The company turned a profit of $89.1 million, or 27 cents per share, in the quarter, compared to a loss of $47.4 million, or $2.07 per share, a year earlier. Sales were $607.1 million, up from from $223.3 million a year earlier, topping a forecast for $582.5 million. Apparel sales contributed to the growth. 

Peloton ended the quarter with more than 1.09 million subscribers, up 113% from a year earlier, and about 3.1 million. Fitness subscribers pay $39 per month to sync workout classes to their Peloton equipment; accessing the programs separately through a phone or tablet device costs $12.99 per month.

Peloton expects fiscal first-quarter sales to be $720-$730 million and fiscal 2021 sales of $3.5-$3.65 billion.

Peloton recently announced two new products: A lower-priced, high-tech treadmill and new high-end bike option with a rotating screen, called the Bike+. The Bike+ retails for $2,495. The original Peloton bike gets a new lower price, dropping from $2,245 to $1,895. 

More information: Peloton shareholder letter


Topics associated with this article: Earnings/Financial Reports

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