After sprinting through pandemic, Peloton hits the wall
ABC News
Peloton is suffering its worst day as a publicly traded company after telling investors that it will likely lose more money than it had expected in fiscal 2022
SILVER SPRING, Md. -- Peloton suffered its worst day as a publicly traded company Friday after telling investors that it will likely lose more money than it had expected in fiscal 2022.
Peloton thrived during the pandemic, recording its first and only profitable quarters with Americans unable to hit the gym, instead setting up places to work out at home. Sales of its high-end bikes and treadmills soared, as did subscriptions for its online, interactive classes.
Those sky-high sales have stalled, however, since the rollout of COVID-19 vaccines. Gyms have re-opened, with some restrictions, and people are beginning to spend money on other things, like travel and restaurants.
Late Thursday, the New York City company said that it expects those lucrative subscriptions to drop 6% and losses in 2022 of between $425 million and $475 million. That's a lot more red ink than its previous guidance of $325 million in losses.
