Shares of home fitness equipment maker Nautilus (NYSE:NLS) jumped 8.5% on Wednesday, as it introduced a new home gym system.
It's not apparent the new home fitness equipment was the catalyst for the jump in the stock's price, since Nautilus shares have been on a tear since the pandemic began, rocketing nearly 600% higher. But a check of the company's Bowflex website showed the new system was already sold out.
Home fitness has been a hot area for investors during the coronavirus pandemic as they have also bid up the shares of Peloton Interactive and athleisure-wear maker lululemon athletica.
None has done better than Nautilus, though it also had been knocked down to virtual penny-stock status, having fallen as low as $1.20 per share. Yet with the realization that chains like Gold's Gym and Planet Fitness would be closed for some time, it made sense to bet on stocks that helped consumers stay fit during the lockdown.
Even though gyms are now reopening, consumers may not flock back right away. Nautilus points to an April survey by Statista showing as many as 41% of respondents don't know when they will go back to the gym, with 21% saying it could be as long as six months.