The Peloton movement may be over. Stocks plummet

the fitness company that was once hot reported late Thursday that sales of its exercise bikes and treads, which account for 60% of its business, fell 17%. Revenue grew just 6% to $ 805 million, which was below analyst expectations.

In a call with analysts, Peloton CFO Jill Woodworth said it is “clear that we underestimate the impact of the reopening on our company and the industry as a whole.”

Simply put, more people are returning to traditional gyms or buying a rival from Peloton. Planet Fitness (PLNT)The stock closed 12% higher on Thursday after reporting a strong earnings report and revealing that its membership levels nearly returned to their pre-pandemic peak of nearly 16 million. Their stock has risen 25% during the year.
Demand for its products is also slower than expected, leading to Platoon (PTON) to trim its full-year sales outlook to $ 4.4 billion and $ 4.8 billion, which is roughly $ 1 billion less than previously anticipated.
Peloton’s move to reduce the price is low-end bike by 20% At $ 1,495 in August it was also a disappointment. “While the price drop led to conversion rates that exceeded our forecast, overall traffic has not met our initial expectations,” admitted Woodworth.
Analysts in Stifel Financial (SF) They have soured slightly about Peloton’s future, writing in a note Friday that the company expects it will take “several quarters to determine a more normalized growth rate, or more skeptically, whether the revised outlook is an indication that the core product may be closer to maturity in existing markets than previously thought. “

The news erased about $ 9 billion from Peloton’s market value, a stark contrast to 2020 when it was one of the biggest Covid-19 winners. The stock has lost about 60% so far this year.

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