Peloton Can’t Keep Up With Demand; Profit to Be Squeezed
- Company has first $1 billion quarter on stay-at-home demand
- Digital subscriptions up 472%, connected fitness subs up 134%
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Peloton Interactive Inc. said it can’t keep up with surging demand for the company’s technology-focused exercise machines, reporting its first $1 billion sales quarter and warning that profit will be squeezed as it tries to fix the problem. The shares dropped about 8% in extended trading.
“West Coast port delays and Covid-related factors continue to present challenges to returning our delivery times to pre-pandemic levels,” the New York-based fitness company said Thursday in its quarterly earnings statement.