Peloton just had his best quarter of all
The fitness company reported more than $ 1 billion in total revenue in the second quarter of fiscal 2021, driven by strong sales during the holiday season and increased demand for home fitness as the pandemic continues.
Subscribers to the company’s Connected Fitness $ 39 per month membership increased 134% compared to the same period last year. The company said it recorded its biggest single member training day during the quarter, with 1.6 million pilots.
The boom in demand for Peloton bikes this year has led to month delays and last-minute cancellations. Some users said that Insider’s Madeline Stone Peloton customer service offered little help when customers reported problems with delivery.
The company said delivery challenges stem from slowdowns related to the pandemic and congestion at West Coast ports, with the e-commerce boom. Peloton plans to invest $ 100 million to streamline bicycle movements around the world.
In a letter to shareholders, Peloton said: “While this investment will damage our profitability in the short term, improving our member experience is our first priority.”
In an email to members, the company further explained the investment: “With immediate effect, we are investing more than $ 100 million to help expedite the movement of bicycles and treadmills around the world, in order to meet our On average, in the coming months, we will be incurring a shipping and delivery cost that is more than ten times our normal cost per bicycle and tread, including, in many cases, shipping by air instead of maritime. “
The company announced plans to acquire Precor, a fitness manufacturer for gyms and hotels, in December for $ 420 million, its first and largest acquisition.