During the coronavirus pandemic, business is booming for those 14 companies

For industry the coronavirus pandemic was, to say the least, bleak. Widespread layoffs and furloughs have caused about 21 per cent of U.S. workers since mid-March to file for unemployment compensation, and analysts believe the U.S. is possibly now in recession. And, even as states start reopening, many of the jobs lost may never return. Yet several businesses have been flourishing during this upheaval due to drastic changes in customer behavior. Restaurants, pubs, offices and gyms are mostly barren, with millions of Americans staying home to avoid the coronavirus spread. That created new opportunities for many businesses.

Activision Blizzard, Electronic Arts and Nintendo

Popular video games such as first-person shooters, football and adorable animals were a boon for top gaming firms. Activision Blizzard (ATVI) said "Call of Duty: Modern Warfare," which came out in September, has sold more copies at this point after its release than any other "Call of Duty" title. In the first quarter, revenues were $1.52 billion, up 21 per cent from last year's $1.26 billion.

For Electronic Arts (EA), sales for the fourth quarter went up 12 percent from last year. FIFA, Madden NFL, The Sims 4 boyed it up. Unlike Activision, people sitting at home and looking for escape have benefited from it.


The breakout success of "Animal Crossing: New Horizons," a game set on an island utopia, has powered sales this spring. In its first six weeks the company sold more than 13 million units of the game. The Nintendo Switch console is also still hard to find, with the business shipping over 21 million units in the last fiscal year.

Clorox Company and Reckitt Benckiser

People can not avoid getting their dwellings sanitized, bleached and washed every nook and cranny. Clorox and Reckitt Benckiser, the makers of the world's leading cleaning products, benefit from this.

Clorox (CLX) said last week that the first quarter saw its total sales leap 15 percent. Clorox's cleaning product revenues, including its wipes and beaches, have jumped 32%. There has also been "increased consumer demand" for cat litter and grilling needs, which has fuelled a 2 percent increase in sales in its household segment.

Reckitt Benckiser (RBGLY), the British company which produces Lysol and Dettol, also experiences record sales. Sales of disinfectants rose 13.5 percent in the first quarter due to "solid market demand" (More than just strong demand for its products, the company was also in the spotlight.)

Sales of aerosol disinfectants jumped from this time last year in March and April 230.5 per cent and multipurpose cleaners 109.1 per cent, according to research firm Nielsen.

Peloton

In-home fitness items, including bikes and treadmills, are made by Peloton (PTON). Unsurprisingly, a blowout quarter announced on Wednesday: sales increased by 66 percent and membership rose by 30 percent for its app. The business, which has a loyal following, has also increased its full-year outlook, as it does not expect to decline in demand anytime soon.

Publix and Kroger

Some of the country's largest grocers also gained from the need for household essentials and food, which stayed open as critical businesses. Publix recently said revenues soared 10 per cent to $1 billion for the first three months of the year. Sales in open shops rose by 14.4 percent at least a year.

The pandemic had also benefited Kroger (KR). Recently, the grocery store said sales in open stores rose by 30 per cent in March for at least a year. The bestselling pieces were packaged meals and paper and cleaning products. As a result, Kroger said its first-quarter results are projected to be better than anticipated.

Beyond Meat

Beyond Meat (BYND)'s revenue more than doubled in the first quarter, the company reported Tuesday. Sales hit $97.1 million in the first three months of the year, up 141 per cent from $40.2 million in the same time last year.

The results "rose above our expectations," CEO Ethan Brown said. Retail sales in the United States rose 157 per cent compared to last year's same time. The meat business based on plants is in a good position as it expands into the Chinese market and faces a regional meat shortage in the USA.

3M

3M (MMM) said that the virus spurred "solid development" for its personal safety products, including gowns and the medical professionals' N95 respirator masks required. Revenue in the first quarter rose by almost 3 per cent to $8.08 billion. This was accompanied by an rise of 21 per cent in its healthcare segment and 4.6 per cent in consumer products, such as Scotch-Brite sponges

Wayfair and Overstock

With much of the country working from home it leaves plenty of time to refresh the room. For its most recent quarter, Wayfair (W)'s sales increased by 20 percent compared to the same period last year. The online retailer said it is seeing "strong growth in new and recurring customer orders," with the number of orders rising to 9.9 million by 21 per cent.

Rival Overstock (OSTK) also said its April retail sales were up 120 percent compared to last year's same month, with growth occurring in its "core categories of home furnishings."

Slack and Zoom

Slack and Zoom have become standard networking devices for people who can operate remotely.

Slack (WORK) Technologies said it added 9,000 new paid customers between February 1 and March 25, an 80 percent increase compared to the previous quarter. Not only do they add more people, users are becoming more chatty: "The number of messages sent per user per day has increased globally by an average of 20 per cent," Slack said in a press release.

Zoom (ZM), a platform for video conferencing, was obviously the biggest brand to break out. According to CEO Eric Yuan the organization hosts 300 million meeting participants a day. Zoom previously said in March it passed 200 million members in the regular meetings. Its stock for the year is up 120 per cent.

Source: CNN Business