Peloton Q4 Sales Boost Amid Stay-At-Home, FedEx Plans 70,000 Job-Hiring Spree for Holidays and Lululemon Online Sales Spike Over 150%
Peloton Q4 Sales Boost Amid Stay-At-Home
COVID-19 has boosted demand for Peloton’s products and services as consumers look for new ways to work out at home. Shares rose Friday after the company reported quarterly sales that topped analytics projections as stay-at-home orders and gym closures continued to spur purchases of the company’s exercise equipment and workout subscriptions. The company said fiscal fourth-quarter revenue surged 172% from a year earlier to $607.1 million. Keybanc Capital Markets analyst Edward Yruma called Peloton’s revenue growth in the quarter “extraordinary,” and said the “very strong price/value consumer proposition,” is also driving the shares.
What stood out to us? The long-game here is how much recurring revenue per machine Peloton can produce.
FedEx Plans 70,000 Job-Hiring Spree for Holiday Surge
FedEx Corporation plans to hire about 70,000 seasonal workers to handle the holiday surge or packages, up 27% from last year’s peak, in what it expects to be an unprecedented level of delivery demand. The courier has already added thousands of workers to keep up with a jump in deliveries as consumers order more online due to COVID-19 concerns. FedEx’s U.S. ground deliveries rose 20% in the quarter through May from a year earlier. The company will most likely match or exceed that for its fiscal first quarter, which ended in August. “These strategic investments will help better support what is expected to be an unprecedented holiday shipping season,” Raj Subramaniam, chief operating officer said in a statement Thursday.
What stood out to us? A sign of the K shaped economic recovery.
Lululemon Online Sales Spike Over 150%
Lululemon Athletica Inc. reported a surge in its ecommerce business for its fiscal Q2 which ended August 2 as quarantine consumers desired comfy apparel such as yoga pants. In a conference call Tuesday to discuss quarterly earnings, CEO Calvin McDonald said he is “cautiously optimistic” about the second half of the year. The retailer also stated that web traffic and conversions increased more than 90% and 45%, respectively, year over year. Lululemon has bolstered its online offerings with free online workouts and one-on-one video chats with sales associates.
What stood out to us? Peloton sales spike and Lululemon sales spike. Correlation or causality? If only Lululemon had a plan to increase recurring revenue per Yoga pant.
In the headlines
- It’s official: Postmates becomes the official on-demand food delivery partner of the NFL.
- A concept: Black Friday is now just a concept at Home Depot as virus rages.
- Lounging: Loungewear proves to be a major sales workhorse for American Eagle Outfitters.
Before you go
The pandemic accelerating the pace of B2B ecommerce.
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