Once one of the hottest brands in fitness – whose popularity soared during the early days of the pandemic – Peloton is now temporarily pausing production of its bikes and treadmills, CNBC reported Thursday.
In a confidential company presentation dated January 10th, Peloton said it had seen “significant reduction” in demand for its interactive bike and plans to pause production of the product for February and March, according to the CNBC report.
It also won't manufacture its Tread treadmill machine for six weeks, beginning in February.
Shares plunged on the news - losing a quarter of their value in midday trading.
The company on Thursday did not immediately respond to a Reuters request for comment.
Peloton had sent up a flair in November when it slashed its full-year sales outlook by up to $1 billion, saying that demand for its bikes and treadmills was waning.
Analysts have warned of a tough road ahead for the company as people begin venturing out of their homes.