Carolyn Tisch Blodgett, chief marketing officer for Peloton, announced today in a post on LinkedIn that she’s leaving her post at the end of the month.
Tisch Blodgett was the first brand hire at the company in 2016, she said on LinkedIn. Since then, the company has grown to 2.6 million members worldwide.
The announcement comes just a day after the home exercise brand reported astronomical growth in its third quarter earnings call, including 94% year-over-year growth and $524.6 million in revenue during the quarter ending March 31—a 66% increase. This morning, Peloton stock was up more than 15%.
During the earnings call on Wednesday, Peloton chief financial officer Jill Woodworth said the company halted all advertising in most markets in mid-March. Doing so, she said, allowed the brand “to see the benefits from many years of marketing investments in brand awareness and high customer satisfaction driving word-of-mouth referrals.”
Woodworth acknowledged during the call that certain pandemic-related changes, such as implementing hazard pay and pausing activities that required employees to enter customer homes, did balance out some of the unexpected growth that the company has seen over the past several weeks.
Still, the “unexpected sharp increase in sales” has meant that Peloton has well surpassed targets. As a result, customers are experiencing longer wait times than usual as the company works to fulfill equipment orders. Those delays are expected to continue throughout the fourth quarter as the company works to catch up, CEO and founder John Foley said on the call.
Peloton’s main product is its stationary bike, which costs over $2,000 plus a $39 monthly digital subscription fee to access virtual classes. In 2018, Peloton launched a treadmill at double the price, though there have been reports of a forthcoming, simpler version of the treadmill at a lower price point, as well as a rowing machine.
The success of the company, and the boost it has experienced with the closure of gyms and public places due to Covid-19, seems to indicate that last year’s infamous—and oft parodied—Peloton holiday ad didn’t have any lasting negative effects for the company. While it was reported at the time that the ad coincided with a drop in the company’s stock, experts largely agreed that the two were unrelated and merely coincidental.
Tisch Blodgett will continue to serve in a an advisory role with Peloton following her last day as CMO on May 29. She wrote in her post that the decision “will give me needed family time as I will be welcoming my third baby into the world this summer.”