The coronavirus has forced a number of retailers to close their doors, but consumers aren’t slowing down when it comes to keeping fit.
Fitness does wonders for our mood and mental health, especially when the majority of the world is now working from home. The gym is no longer an option, so it’s not really a huge surprise that companies helping people workout from home are booming, along with sportswear apparel brands such as Nike (NYSE:NKE).
This stock is sprinting through quarantine, selling customers treadmills and bikes to help them workout at home. While Peloton (NASDAQ: PTON) products are quite pricey, with a bike setting you back just over $2,000, the company is still experiencing huge growth. Peloton’s revenue for the first half of its current fiscal year hit $694 million, up 85%.
The coronavirus has stung the company a little after it closed retail shops and canceled delivering treadmills in March. It’s hoped the subscription to its fitness app will continue to grow after it extended its one-month trial to 90 days. This is also Peloton’s way of getting people involved who haven’t purchased the branded equipment.
While a number of countries start to slowly re-open businesses, it is likely people will continue to choose home workouts over the gym for some time to come. This puts Peloton in a good position to build its subscription base and should have increased demand from those stuck indoors.
This luxury sports-wear brand has undoubtedly been affected by the virus, as it was forced to temporarily close its stores in China and other locations across the globe. The majority are now back up and running in China and Lululemon (NASDAQ: LULU) posted some impressive first-quarter results, with same-store sales up by 14%.
The company believes it will continue strong once the pandemic settles, as it has built a solid community among its customers. CEO Calvin McDonald says the coronavirus won’t stop people from wanting to stay healthy and active.
The virus’ impact on Lululemon is still unknown, but it does have $1 billion of cash in the bank. Also if the brand’s most recent earnings report and the CEO’s positivity is anything to go by, in the future for the company is looking good.
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