Now that people are going back to gyms and back outdoors, they’re no longer lusting for Peloton’s pricy at-home exercise bikes.
Peloton’s shares sank by a third at the market open Friday after the company swung from a quarterly profit to a loss. It lowered its annual sales forecast, and its holiday-quarter outlook also missed analysts targets. \
The bike-maker was something of a lockdown standout, but growth slowed as health restrictions ebbed. That shift boosted earnings at gym franchises such as Planet Fitness.
Peloton responded by boosting its marketing efforts and slashing the price of its most popular bike by $400. But sales grew at its slowest pace in more than a year.
On top of all that, the global chip shortage, supply disruptions and rising freight costs forced the firm to pay more to bring its product to customers, further eroding its bottom line.
Peloton rode the stay-at-home stock boom as its shares jumped nearly six-fold last year, but the stock has plummeted roughly 60% so far this year.