Peloton Interactive reported a 23.6% drop in quarterly revenue, mainly due to lower demand for exercise bikes and elliptical machines from fitness enthusiasts who returned to gyms after the pandemic restrictions were lifted.
The company’s share fell 16.9% in pre-conference trading.
Like many businesses that have benefited from people staying at home, the fitness equipment manufacturer is struggling with falling demand.
The company’s market capitalization has fallen to $ 4.69 billion from nearly $ 50 billion during the pandemic, when demand for cyclists and other fitness products peaked.
The company’s revenue fell to $ 964.3 million in the quarter from $ 1.26 billion a year ago.
Peloton had replaced its CEO in February and has announced measures such as price cuts for its equipment, while focusing on subscription plans to transform the company.
Net loss widened to $ 757.1 million, or $ 2.27 a share, in the quarter from $ 8.6 million, or 3 cents a share, a year ago.
Source: Capital
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