Companies like Century 21 and Peloton are experiencing different pandemic realities.
The pandemic will permanently change the many industries. From automotive production to schools and real estate, COVID-19 is set to halt growth for many businesses, but for many others like remote learning, virtual learning and bikes, the world situation means prompt sales for a lot others.
Peloton, famous for selling their high-tech stationary bikes and treadmills, swung to a profit of $89.1 million, or 27 cents per share, compared with a loss of $47.4 million, or $2.07 per share, a year earlier, taking its fiscal fourth-quarter sales surge 172% with no expectation to slow down anytime soon. Its earnings per share came in 17 cents ahead of analysts’ expectations. Average net monthly connected fitness churn was 0.75% in the latest period. And it’s predicting fiscal 2021 churn will remain under 1%. This is how Peloton did for its fourth quarter ended June 30 compared with what analysts were expecting, based on Refinitiv data, CNBC reports:
- Earnings per share: 27 cents vs. 10 cents expected
- Revenue: $607.1 million vs. $582.5 million expected
Peloton is calling for fiscal 2021 sales of between $3.5 billion and $3.65 billion, which at the midpoint of that range would be up 96% from a year earlier — again solidly outpacing estimates of $2.7 billion.
Despite the success, this also means more strain on Peloton’s supply chain. In a letter to shareholders, Peloton said it had expected demand to “moderate,” but a recent resurgence of COVID-19 cases has “perpetuated the imbalance of supply and demand.” It said it doesn’t expect to return to “normalized order-to-delivery windows” in the U.S. before the end of the fiscal second quarter.
A different case
Century 21, the beloved discount department store that started in lower Manhattan, has filed for bankruptcy and announced it will “wind down” its operations and begin going-out-of-business sales, reports Gothamist. The company says that they had no choice after not being paid $175 million from insurance providers “under policies put in place to protect against losses stemming from business interruption such as that experienced as a direct result of the COVID-19 pandemic.”