. The global supply-chain crisis also has ballooned the company’s costs as it spends extra to get its pricey spin bikes and treadmills from overseas factories into consumers’ hands. Peloton’s shares were already down 43% for the year ahead of Thursday’s report.
But the company’s previous problems were mostly high-quality ones, with consumers plunking down large sums and still willing to wait months for delivery. By comparison, Chief Financial Officer Jill Woodworth said on Thursday’s conference call that the company has “never seen a more complex operating environment,” with reduced order backlogs affecting its ability to accurately forecast.
Translated: Peloton demand is in an extended cool-down. The company added only 161,000 connected fitness subscriptions during the September quarter—its lowest number in almost two years and nearly half its average over the previous four quarters. Workouts on the Peloton platform also have been falling over the last two quarters.
Peloton has been making some smart moves, including trying to build up domestic manufacturing abilities while also expanding into commercial markets, such as supplying equipment to hotel gyms. But the company noted Thursday that visits to such facilities, leading commercial customers to hold off on capital expenditures. And Peloton itself says it is now looking to make “material improvements” to its own cost structure, which include “significant adjustments” to its hiring plans.
No worries though, nothing appreciates in value like luxury brand exercise equipment, right?
You have to Stand Up for yourself, No one is gonna be with you on the way to Success because the path of Success is very hard and only few can go over it. I earned $350,000 thanks to _Ambreymarcus
I wouldn’t touch $pton beyond 50$
Is this surprising? Shouldn’t be.
horrible
Health Health Latest News, Health Health Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Black Peloton employees are questioning the company about low payInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know. 佩洛顿的黑人员工正在向公司提出减薪的问题 $KISHU fixes this you get paid to hodl and extra rewards for holding we no longer need to work. financial freedom is near Kishu LMAO everything is racist according to
Source: BusinessInsider - 🏆 729. / 51 Read more »