Economic news

Peloton Forecasts Q1 Revenue below Estimates on Waning Demand

Aug 23 (Reuters) - Peloton Interactive on Wednesday forecast first-quarter revenue below Wall Street estimates as a shift in consumer spending toward travel and experiences hurt demand for its exercise equipment, sending its shares 14% down before the bell.

The New-York based company that benefited from a surge in demand for its connected bikes during the pandemic has seen a sharp revision in demand post pandemic as people also return to gyms.

Consumers also cut back on discretionary spending amid a series of interest hikes over the past year stoking fears of an economic downturn.

Peloton's revenue in the fourth quarter fell to $642.1 million from $678.7 million a year earlier.

Revenue from connected fitness products fell to $220.4 million from $295.6 million, while subscription revenue were up to $421.7 million from $383.1 million a year earlier.

The company now expects first-quarter revenue between $580 million and $600 million, below analysts' average estimate of $655.9 million, according to Refinitiv data.

Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli

Source: Reuters


To leave a comment you must or Join us


More news


Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree