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Peloton wind encounters intensify when people violate the pandemic regime WGN Radio 720


In the third quarter, Peloton’s struggle for increased sales continued as more people broke away from health care procedures forced during the pandemic, and the company’s revenue forecast led to shares falling more than 20% before the opening call.

The maker of exercise bikes and high-end treadmills thrived during the COVID-19 outbreak, and the New York company’s sales growth in 2020 doubled and grew by 120% in the last fiscal year.

However, the availability of vaccines and the easing of restrictions against COVID-19 opened up more training options, and Pelaton suffered. In February, the company announced a major restructuring and abandoned plans to open its first American factory, which would employ 2,000 workers in Ohio. Co-founder John Foley has resigned as CEO, and the company has said it will cut nearly 3,000 jobs.

On Tuesday, the company announced a mandatory letter from JP Morgan and Goldman Sachs to borrow $ 750 million, but new CEO Barry McCarthy said in a letter to Peloton shareholders ended the quarter with $ 879 million in cash, “leaving us fine-capped for businesses of our scale.”

Peloton increased rapidly during the pandemic, increasing its subscriber base from 700,000 to 3 million. This led to a reassessment of product demand and loaded the company with a significant inventory of unsold bicycles and treadmills.

McCarthy said the company should reconsider its capital structure while seeking to expand its subscriber base to 100 million.

“Turning is hard work,” McCarthy said in a letter to shareholders. “It’s intellectually challenging, emotionally soaking, physically exhausting and it all takes up. It’s a full-fledged sport. “

Peloton Interactive Inc. lost $ 757.1 million, or $ 2.27 per share, in the three months ended March 31. Excluding unique items, it lost 98 cents a share, ahead of a loss estimate of 85 cents a share, according to a survey by Zacks Investment Research.

The loss was much greater than last year, when Peloton was in the minus $ 8.6 million.

Revenue fell 15% to $ 964.3 million, which is also in line with analysts’ forecasts.

Peloton said it expects revenue of $ 675 million to $ 700 million this quarter. This too spoiled investors at the start of trading. According to FactSet, industry analysts forecast revenue in the fourth quarter of $ 820.3 million.

Shares fell $ 3 to $ 11.13 about an hour before markets opened. This year, shares have fallen by more than 60%. At the peak of the Peloton stock, it cost as much as $ 171.


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