Peloton forecasts quarterly revenue above expectations
STORY: Peloton’s sales may finally be back on track.
The fitness equipment maker on Wednesday forecast current-quarter revenue above expectations – thanks in part to partnerships with Amazon and Dick’s Sporting Goods, who just months ago became the first retailers outside of Peloton itself to sell the company’s interactive bikes and treadmills.
Peloton had been all the rage among fitness enthusiasts stuck at home during the health crisis, with the company hitting hit a peak market value of nearly $50 billion in early 2021.
But as economies reopened and people returned to gyms, the company saw demand for its equipment dwindle.
CEO Barry McCarthy, a Spotify and Netflix veteran who took the helm one year ago, in a letter to investors outlined goals of returning to revenue growth and breaking even on cash flow on a sustained basis.
Analysts, however, say it is likely to be a bumpy ride for Peloton in the coming months, with some less than impressed with the latest quarterly report.
One told Reuters that the company’s business model “still has a lot to prove."
Peloton’s shares notched double-digit percentage gains in early Wednesday trading.