Peloton has a challenge in his hands: shipping delays, caused by increased demand for his products and congestion challenges at Los Angeles shipping ports.
But delays in shipping your connected exercise devices can have disappointing effects in the fourth quarter if delays continue early next year.
This is for Goldman Sachs, who said on a note Wednesday that “many of the short-term opportunities are being considered. “
Peloton is expected to continue to gain advantages from an accelerated curve due to the COVID-19 pandemic, Goldman said, which has contributed to a 458% uptick in inventory since it was added to Goldman’s grocery shopping list in the US.
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But congestion at Los Angeles shipping ports, combined with an already strong backlog for Peloton’s bike and treadmill products, may lead to a leak of expected deliveries in the fourth quarter through the first quarter of 2021.
Peloton informed consumers waiting for a bike delivery at the time of October that these deliveries would be delayed from five to six weeks and could fall by 2021 if consumers do not postpone their delivery date within 48 hours of notification of the delay.
This threat may be reflected in Peloton’s December forecast when the company publishes its third quarter results, which can lead to volatility in the percentage price.
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“We see [volatility] as an access point given our long-term perspective for the company,” Goldman said.
Despite expected delays, Peloton will be able to execute all orders with little or no subscriber loss, according to Goldman.
Peloton shares fell 4% to $119. 85 in Thursday morning’s operations.
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