Companies like Icon, which makes fitness equipment and is expanding an online-workout app, should seize the moment. At-home gym equipment is more needed than ever. Cash injections not only ramp up production but bolster marketing tactics that lure in subscribers.
The trouble is there are too many companies chasing each aspiring athlete. Just as hope triumphs over experience when setting health and fitness targets, those investing in workout companies might find reality falls short of their lofty goals, too. . The Great Depression popularized layaway plans, where shoppers paid for items in installments and then took them home when paid in full. The pandemic is universalizing the reverse – and Macy’s wants in.
Nearly a century may separate the two financing inventions, but the consumer impetus is the same. Consumers’ wallets are shrinking, and they are looking to spread out payments. Likewise, retailers are desperate for sales, and buy-now-pay-later plans do that in exchange for giving away a cut.
Given cash-strapped SMEs have already maxed out on credit as their first line of defence, new lockdowns may do more lasting economic damage than the first round of shutdowns. Moreover, the taxpayer won’t get much back from the state-backed loans. Debt has soared as revenue collapsed in sectors like tourism, sending leverage ratios through the roof. Balancing SME viability and virus control always represented a sharp trade-off for Johnson. It’s getting harder.
Revenue would have been 1.1 billion euros rather than 855 million euros, had fans piled into stadiums and sponsors coughed up as usual. Salaries and other costs, apparently, would have been precisely 7% higher, yielding 2 million euros of earnings rather than a 97 million euro loss. It’s silly. What matters is that Barcelona’s debt has more than doubled in a year to 379 million euros. At 3.6 times EBITDA, that constrains its ability to sign talent.