Post by trueblue on Aug 29, 2022 0:00:50 GMT
'Layoffs. Losses. Plunging share prices. These pandemic winners are now struggling'
New York (CNN Business)Few companies flourished more amid the pandemic's economic upheaval than Peloton.
With people unable (or unwilling) to go to the gym, consumers rushed to buy its exercise equipment and, more importantly, sign up for its online classes. Peloton posted its first quarterly profits in calendar year 2020 as revenue jumped 139% and the stock soared 434%.
The boost was short-lived. As gyms reopened and class subscriptions and equipment sales plunged, so did the company's outlook.
Thursday, after posting a worse-than-expected fiscal fourth quarter loss, Peloton CEO Barry McCarthy wrote in a letter to investors that "naysayers will look at our Q4 financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses. They will say these threaten the viability of the business."
Thursday, after posting a worse-than-expected fiscal fourth quarter loss, Peloton CEO Barry McCarthy wrote in a letter to investors that "naysayers will look at our Q4 financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses. They will say these threaten the viability of the business."