Peloton keeps tumbling as it warns for Christmas slump
Peloton has forecast second-quarter revenue below Wall Street estimates as the company continues its two year tumble from grace as the leading stay-at-home stock.
The exercise bike maker said it expects current-quarter revenue between $700m and $725m, down from analysts’ estimates of $874m, according to Refinitiv data.
In a shareholder letter this morning, the company wrote: “Peloton’s turnaround remains a work-in-progress, with $199 million in 1Q23 recall reserves, restructuring, and impairment expenses”.
The company also expressed fear towards the Christmas period, with the “economic climate” weighing down.
Since taking reins earlier this year, Peloton chief exec Barry McCarthy has been on a mission to turn the company’s fortune around.
In a recent interview with Wall Street Journal, the Peloton boss said the firm remains unprofitable and needs to turn itself around in the next six months or face existential threat as a stand-alone company.
The stay-at-home stock boomed during the pandemic thanks to gym closures and lockdown hobbies driving consumers to the brand.
However, the success was short-lived and shares have tanked over 90 per cent in the last year, shaving about $47bn off its market cap since the start of 2021.