
business-fitness2.115 min read
"Peloton's Stock Plunge Sparks Uncertainty Over Company's Future"
1 year ago•Source: Global Cycling Network
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Peloton's shares plummeted nearly 25% after the company warned of a sales decline and cut back its revenue forecast, citing softer-than-expected sales of its high-end equipment like stationary bikes and treadmills. The at-home exercise boom during the pandemic has waned as users return to gyms, leading to a 6% drop in sales to $743.6m in the last quarter. The company expects revenue to fall by about 5% in the current quarter and has downgraded its full-year revenue guidance. Despite challenges, Peloton's CEO remains optimistic about improving performance and notes strong sales growth over the holiday period, as well as encouraging demand for its Tread+ treadmill.