The coronavirus pandemic is turning the $94 billion fitness industry on its head as closed gyms try to keep members engaged, while at-home systems and services are surging.
Gold’s Gym filed for bankruptcy this week and 24-Hour Fitness considered the move in April, according to CNBC. Other brick and mortar gyms, including Equinox and Orange Theory, are scrambling to offer classes virtually in an effort to bring people back when they reopen. Meanwhile, a poll in Colorado found more than half of members don’t plan on returning to their gyms.
That may be in part because home-based systems like Peloton and MIRROR have become technically feasible and are seeing their sales rise. The New York Times even detailed the “panic buying” of Peloton bikes – which cost $2,245.
Peloton’s Big Quarter
Since mid-March, Peloton’s stock has jumped 86%. In April, a record 23,000 people joined a single live class. Even after a rough IPO last year and a panned holiday ad campaign, the company’s revenue rose 66% in the first three months of 2020.
Key 3Q Figures
- $420.2 million in fitness product sales (+61% YoY)
- 888,100 connected subscribers
- $98.2 million subscription revenue (+92%)
- $1.74 billion projected revenue in full 2020 FY (+89%)
Individual investors aren’t the only ones cashing in on Peloton’s recent success. NBCUniversal sold half its stake in the company – 5.2 million shares worth $178 million – to raise cash for its other businesses.