Peloton quarterly revenue tumbles on weak demand, shares plunge

A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, September 26, 2019. REUTERS/Shannon Stapleton

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May 10 (Reuters) – Peloton Interactive Inc (PTON.O) reported a 23.6% fall in third-quarter revenue on Tuesday, battered by lower demand for its stationary exercise bikes and tread machines from fitness enthusiasts returning to gyms as pandemic curbs eased.

The company’s shares tumbled 16.9% to $11.7 in trading before the bell.

Like many stay-at-home winners, the fitness equipment maker is grappling with plummeting demand. The company’s market value has dropped to $4.69 billion from nearly $50 billion during the pandemic when its bikes and on-demand fitness content were lapped up.

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The interactive fitness equipment maker’s revenue fell to $964.3 million in the quarter from $1.26 billion a year earlier.

Peloton, in February, replaced its chief executive officer and has unveiled measures like price cuts for its equipment while focusing on its subscription plans to transform the company.

Net loss attributable to Class A and Class B shareholders widened to $757.1 million, or $2.27 per share, in the quarter ended March 31, from $8.6 million, or 3 cents per share, a year earlier.

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Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Arun Koyyur and Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles.

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