Peloton Stock Skids As Company Posts Loss, Cuts Bike Price

NEW YORK: Peloton’s shares skidded in aftermarket trading Thursday after the exercise bike and treadmill company posted a loss for its most-recent quarter, showed slower revenue growth, and cut the price of its most-popular product.

Peloton Interactive Inc. reported a net loss of $313.2 million in the quarter that ended June 30. That compared to a profit of $89.1 million the same period last year. A portion of the latest quarter’s loss stemmed from the company having to recall its treadmill machine after it was linked to a death of a child and numerous injuries.

The quarterly loss amounted to $1.05 a share. Wall Street analysts had been expecting a loss of 44 cents a share, according to FactSet.

Peloton’s revenue in its fiscal fourth quarter totaled $936.9 million. That was better than the $928.6 million expected by analysts.

But the company said expects revenues in the current fiscal first quarter of $800 million, well short of analysts forecasts of $1 billion.

New York-based Peloton’s stock was down about 6% in after-hours trading.

Peloton was one the pandemic’s success stories, as quarantined Americans bought at-home exercise equipment as a way to stay fit. But its success has bred additional competitors, who now sell cheaper bicycles and exercise equipment. In addition, many high-end gyms are offering virtual classes that once were Pelotons biggest draws.

The company announced Thursday that it is cutting the price of its Peloton Bike the product that was the cornerstone of its popularity to $1,495 from $1,895. It will also offer additional financing options for those wanting to purchase the bike. The move could be seen as either a sign Peloton wants to broaden its customer base, or that demand for its products is waning.

While the company reported a 54% rise in revenue from last year, the pace of that revenue growth and appears to be slowing. In the previous three-month period, its revenue grew 141%.

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