“We have said we believe our order-to-delivery is going to come down. This investment certainly will help. We see light at the end of the tunnel for sure, with these manufacturing ramps. We've added two new factories in Taiwan over the last four months alone. And so we feel like we're in a good place with manufacturing and sourcing,” Lynch said, who is also a Peloton board member.
Lynch added, “We expect continued accelerated growth, which is exciting for us and exciting for the community as it builds. So we do see a light at the end of the tunnel, yeah. And we do expect it to get better in the spring.”
To help overcome port congestion and limited capacity, Peloton said it will spend $100 million in its current fiscal year to address the issues.
Peloton shares fell about 5% in early trading Friday despite a strong quarter, paced by a 128% improvement in sales compared to last year.
Here is how Peloton performed compared to Wall Street estimates.
Net Sales: $1.06 billion versus $1.03 billion estimate
Connected Fitness Subscribers: 1.67 million versus estimate for 1.64 million
Adjusted EBITDA: $116.9 million versus estimate for $78.7 million
Diluted EPS: $0.18 versus $0.10 estimate
Full Year Outlook:
Net Sales: $4.075 billion or more (prior outlook: $3.9 billion)
Gross Margin: about 39% (prior outlook: 41%)
Adjusted EBITDA: $300 million or more (reiterated)
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