Peloton stock under pressure on Wall Street, sells after issuing a balance sheet that highlighted a loss higher than expected by the consensus and after announcing a cut in the prices of its bikes, which will have negative consequences on its profitability.
The fitness equipment group, which became popular in the period of the Covid-19 lockdown, has warned that its profits will suffer in the short term, due to the 20% reduction in the prices of its original Bike.
The American company has also announced plans to return to focus on the sales of its treadmills, which are less profitable than those of its bicycles.
In addition, Peloton announced that it identified a problem in the way its stocks were accounted for. However, a reformulation of the budget will not be necessary.
In numbers, in the fourth quarter ended June 30, Peloton suffered a net loss of $ 313.2 million, or $ 1.05 per share, compared to the net profit of $ 89.1 million, or 27 cents per share, of the same period of 2020.
Liabilities exceeded the loss of 45 cents per share expected by analysts.
Revenue was up 54% to $ 936.9 million, from $ 607.1 million last year. However, the pace of turnover growth slowed the pace from the previous quarter, when sales more than doubled on an annual basis to exceed $ 1 billion.
The slowdown was also caused by Peloton’s decision to recall its Tread and Tread + products, temporarily halting sales of the tools.
Tread, the cheaper version, will go back on sale next week, while the company hasn’t said anything about when it will relaunch sales of the Tread +.
The stock lost 2.6% in the premarket, after losing up to -7% in yesterday’s afterhours trading.
Peloton was among the most-watched titles in 2020. With gyms closed, sales of its equipment soared as consumers aimed for the company’s premium exercise bike and fitness subscription ($ 39 per month). The stock’s rally was + 368% last year.