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Shares of connected fitness equipment maker fell 16% after reporting a wider-than-expected quarterly loss and a significant decline in sales as inventory piled up in warehouses.
Source: Peloton
PTON down -16.21%, PLNT up +3.24%
Peloton’s losses widened in Q3 to $757.1 million, or $2.27 per share, from a net loss of $8.6 million or 3 cents per share, a year ago.
Revenue fell to $964.3 million from $1.26 billion a year ago. That was short of expectations for $972.9 million and marked the company’s first year-over-year decline in sales since going public in 2019.
Peloton generated $594 million in sales from its connected fitness products and $370 million from subscriptions in the recent period.
Connected fitness equipment maker ended the quarter with 2.96 million connected fitness subscribers, signaling a net addition of 195,000.
The company also expects a weak sales outlook for the fourth quarter, citing lower demand. The company expects planned subscription price hikes might lead some users to cancel their memberships.
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