Peloton Interactive Inc cut its annual revenue outlook by nearly $1 billion and lowered its projections for subscribers and profits, according to a report by Bloomberg on Thursday.
- The fitness company now projects sales of $4.4 billion to $4.8 billion in fiscal 2022 that end next June. Less than three months ago, it had been forecasting revenue of $5.4 billion.
- The dim outlook sent the stock plunging nearly 30% to $60.12 in late trading. Throughout the year, Peloton shares were down 43% this year.
- Peloton benefited from the pandemic, with customers staying at home buying home-exercise services during lockdowns. Now people are going back to the office, gyms, and school, hurting demand for the company’s equipment.
- Supply chain problems and rising costs of commodities and freight also weighed on Peloton.
Peloton is forecasted to have 3.45 million connected fitness subscriptions by the close of the fiscal year. It had initially estimated 3.63 million. Gross profit will be 32% compared to an initial estimate of 34%. PTON down -31.75%, Pre-market trading.