Shares of Peloton plunged on Thursday after the fitness company warned investors it is still months away from growing sales or turning a profit.
The retailer posted mixed results for its holiday quarter, as it lost slightly more money than Wall Street expected but beat revenue estimates. Peloton also forecast weaker sales and a bigger loss than expected in its current quarter.
Peloton shares closed more than 24% lower.
Here’s how Peloton did in its fiscal second quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Loss per share: 54 cents vs. 53 cents expected
- Revenue: $743.6 million vs. $733.5 million expected
The company reported a net loss for the three-month period that ended Dec. 31 of $194.9 million, or 54 cents per share, compared with a loss of $335.4 million, or 98 cents per share, a year earlier.
Sales dropped to $743.6 million, down from $792.7 million a year earlier.
The company issued dismal guidance for the current quarter and a tepid full-year sales outlook.
For its fiscal third quarter, Peloton expects sales to be between $700 million and $725 million, compared with a Wall Street estimate of $754 million, according to LSEG. The company expects its adjusted EBITDA loss to be between $20 million and $30 million, compared with analyst estimates of a loss of $2 million, according to StreetAccount.
“Our outlook is tempered by uncertainty surrounding our ability to efficiently grow Paid App subscribers and the performance of other new initiatives, as well as an uncertain macroeconomic outlook,” finance chief Liz Coddington wrote in a letter to shareholders.
Peloton’s connected fitness subscription guidance came in higher than expected. The company also said it saw strong sales at retail partners like Dick’s Sporting Goods and Amazon, and demand for its Tread+ was “significantly stronger” than expected.
For the second quarter in a row, Peloton managed to eke out a gross…
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