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Peloton headwinds stiffen as people break pandemic routines

Peloton Production
Posted at 9:07 AM, May 10, 2022

Peloton’s uphill struggle to generate sales as more people break from health routines forced during the pandemic continued in the third quarter and the company’s revenue outlook sent shares tumbling 17% at the opening bell.

The maker of high-end exercise bikes and treadmills thrived during COVID-19 outbreaks and sales growth for the New York City company doubled in 2020 and surged 120% in its last fiscal year. The availability of vaccines and easing of COVID-19 restrictions, however, have opened up more workout options and Peloton has suffered.

Peloton lost $757.1 million in the most recent quarter, which was worse than Wall Street had expected.

"Turnarounds are hard work," CEO Barry McCarthy told investors in a shareholder letter, according to CNN. "It's intellectually challenging, emotionally draining, physically exhausting, and all-consuming. It's a full-contact sport."

CNN added Peloton added just 195,000 new subscribers last quarter, less than half what it was adding a year ago.