Updated: Jul 1, 2020
The shutdown related to Covid-19 has disrupted the fitness industry, particularly among independent fitness studios and gyms. Even as shelter-in-place restrictions ease, the increasing unemployment rates, fitness company bankruptcy such as Gold's Gym, and lingering fear of virus contraction will likely discourage Americans from attending group classes or using shared spaces to maintain fitness.
Looking forward, this presents an opportunity for companies that offer at-home fitness options such as Peloton and Mirror Home Fitness, as well as for those smaller companies that design and outfit home gyms. The trend toward at-home fitness options has already created a significant order backlog for Peloton pre-Covid pandemic. As more people select to work out at home, that backlog is likely to continue to increase, generating greater cash flow and increasing the Company's value.