Peloton shares tumbled more than 25% on Thursday, after the company reported weakening sales growth and a wider-than-expected loss in its fiscal first quarter.
The company slashed its outlook for the full fiscal year amid softened demand for its exercise equipment and ongoing supply chain challenges. More consumers are opting to return to gyms such as Planet Fitness and Equinox, or fitness junkies are purchasing another at-home option from the flurry of companies that sell everything from rowing machines to connected mirrors.
In August, Peloton slashed the price of its original Bike by 20% to $1,495. On Thursday, Chief Financial Officer Jill Woodworth said that while Bike sales accelerated after the change, the results haven’t entirely met Peloton’s expectations.CNBC
Loss per share: $1.25 vs. $1.07 expected
Revenue: $805.2 million vs. $810.7 million expected
With gyms reopening, I think Peloton’s gonna be a bear case.