Peloton Shares Drop 22% After Posting Wider-Than-Expected Loss, Falling Sales Due to Bike Recall, Seasonality
August 24, 2023
Peloton reported a wider-than-expected loss for its fourth fiscal quarter and experienced a drop in new subscribers, attributing it to the recall of its Bike seat post and seasonality. The company’s net loss was $241.8 million, compared to a loss of $1.26 billion a year earlier, while sales dropped to $642.1 million from $678.7 million in the previous year. Despite beating sales expectations, Peloton’s shares plummeted around 22%, but CEO Barry McCarthy expressed optimism about the company’s future growth strategies, including a rebrand, new pricing tiers for its fitness app, and business-to-business initiatives.
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