14 American companies that have benefited from the pandemic
The pandemic, to put it mildly, has had a negative impact on American business. Mass layoffs and unpaid leave have forced about 21% of the U.S. workforce to apply for unemployment benefits since mid-March. Economists believe the country is likely already in recession, and even when businesses reopen, many of the lost jobs will not be recovered..
However, some companies have benefited from the coronavirus and changing consumer behavior..
Restaurants, bars, gyms and offices are largely empty as millions of Americans are in self-isolation at home to stem the spread of the epidemic.. This created new opportunities for several companies.
Activision Blizzard, Electronic Arts and Nintendo
The video game market is experiencing a big surge in interest. Online shooters, sports simulations and multiplayer games are in great demand.
Activision Blizzard stated that "Call of Duty: Modern Warfare", which came out in September, sold better than any other game in the series. In the first quarter project sales totaled $ 1.52 billion, an increase of 21% over with last year’s performance.
For Electronic Arts revenue in the fourth quarter increased by 12% compared to with last year. Growth is driven by FIFA, Madden NFL, and The Sims 4. Like Activision, the publisher also benefited from the fact that people stayed at home and plunged into entertainment on the internet.
Nintendo said on Thursday that its annualized profit rose 41%, the highest in nine years. Profits in the first three months of 2020 grew by more than three times compared to the previous quarter.
Clorox and Reckitt Benckiser
In this situation, people cannot stop disinfecting, bleaching and cleaning every corner of their home.. This benefits Clorox and Reckitt Benckiser, the world’s largest cleaning agent manufacturers..
At Clorox said the company’s total sales jumped 15% in the first quarter. Clorox cleaning segment, which includes wipes and disposable handkerchiefs, up 32%. There was also increased consumer demand for cat litter as well as barbecue products..
Reckitt Benckiser, UK-based company that makes Lysol and Dettol, also records record sales. In the first quarter, they grew by 13.5% due to strong consumer interest in disinfectants.
Sales of aerosol disinfectants jumped 230.5% in March and April and sales of universal cleaners jumped 109.1% over the same period last year, according to research firm Nielsen..
Peloton Company, a home fitness company that includes bicycles and treadmills reported 66% revenue growth in the first quarter. The brand also raised its forecast for the current year, expecting demand will not subside anytime soon..
Publix and Kroger
The need for household items was met by some of the country’s largest grocery stores, which remained open as major businesses..
Publix recently reported that sales jumped 10% to $ 1 billion in the first three months of the year..
Kroger also benefited from the pandemic, raising sales in March 30%. Top-selling items are food containers and napkins. As a result, the company expects its first-quarter results to be better than forecast..
Revenue of the largest vegetable meat producer more than doubled in the first quarter. Sales reached $ 97.1 million in the first three months of the year, up 141% from the same period last year.
«The results exceeded our expectations», – said the CEO of Beyond Meat Ethan Brown. In addition to success in the United States, the brand successfully entered the Chinese market, which is experiencing a meat shortage.
3M said the virus has spurred a strong increase in consumer interest in their personal safety products, including gowns, respirator masks and other items needed by healthcare professionals.. Revenue in the first quarter grew by almost 3% to $ 8.08 billion.
Wayfair and Overstock
Being at home every day forces people to think about updating the space..
Sales of Wayfair, a major online furniture and home goods retailer, per last quarter increased by 20% compared to the same period last year. The number of orders increased by 21% to 9.9 million.
Rival company Overstock also reported that its April retail sales jumped 120% from the same month last year, with the increase coming from its «key categories of household goods».
Slack and Zoom
For people who have had to work remotely, Slack and Zoom have become essential communication tools.
Which businesses are benefitting from COVID-19 pandemic?
Slack Technologies announced that from February 1 to March 25, it acquired 9,000 new paying customers, up 80% from the previous quarter.. Moreover, users have become much more active. According to statistics, the number of messages sent per user per day increased by an average of 20%.
Zoom, a video conferencing application, sees an all-time leap in demand for its tool. The company serves 300 million video call participants per day. Earlier it was reported that 200 million online conferences were launched daily in March..