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Peloton forecasts $1b in sales in next quarter, but supply concerns remain

Published November 5, 2020

NEW YORK (BRAIN) — Peloton is forecasting total revenue of $1 billion in its fiscal second quarter, roughly the final quarter of this year's calendar. It would be the first billion-dollar quarter for the company, which also warned of continuing supply constraints despite the expected opening of its new factory in Shin Ji, Taiwan. 

In the most recent quarter, Peloton reported that its revenues grew 232% over the same period last year, to $757.9 million. Net income for the quarter was $69.3 million, $0.20 per diluted share. 

"Though we have made progress in narrowing our order-to-delivery windows, continued high global demand for our products resulted in a substantial backlog of deliveries at the end of the quarter," the company said in its first quarter earnings letter Thursday.

"In addition to the strong sales we’ve seen since the early spring due to COVID-19, our outlook also reflects the better-than-expected reception for Bike+ from both our existing and new members. While we have significantly expanded our manufacturing capabilities and expect continued progress over the coming months with the opening of our new Shin Ji facility at Tonic, we will be operating under supply constraints for the foreseeable future."

The company said it expects "normalized order-to-delivery windows" for its Bike model by the end of the calendar year. However, it said wait times for its new top-end Bike+ model will likely be elevated for the next couple of quarters.

After the billion-dollar holiday season, Peloton expects sales growth to return to slightly more modest levels in its second fiscal quarter. It's forecasting full-year sales of $3.9 billion or more, with a gross profit margin of about 41%.

Topics associated with this article: Earnings/Financial Reports

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