Peloton Interactive LLC update
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Fitness technology group Peloton’s sales outlook for the quarter was disappointing and warned that its profitability will be hit by rising commodity costs and falling prices for the most popular video-connected exercise bike.
Analysts surveyed by Refinitiv said the New York-based company expects its revenue for the first fiscal quarter ending September 30 to be US$800 million, which is lower than the expected US$1 billion.
Peloton acknowledged that its high prices are still an obstacle for consumers and lowered the price of its best-selling bicycle products by US$400 to US$1,495, which is the second reduction in a year.
The company warned that “our original bicycle prices have fallen, commodity costs have increased significantly, and freight costs have risen”, as well as investments in marketing and new products, which will hinder its profitability in the short term.
For the entire fiscal year, the company expects revenue of 5.4 billion U.S. dollars and an adjusted loss of 325 million U.S. dollars. Affected by this news, Peloton’s stock price fell 14% in after-hours trading, and then recovered some of the decline, and the transaction price fell 6%.
Disappointing sales prospects are accompanied by quarterly results showing a slowdown in revenue growth in the fourth quarter.
Chief Financial Officer Gil Woodworth said: “Remember, without Covid, we would not expect or intend to achieve profitability in FY 2021, although our profitability will fall back in FY 2022…. The economic situation of the model is very confident, and it is expected that the adjusted EBITDA will be profitable again in fiscal year 2023.”
Peloton has a fanatical following in the fitness world, benefiting as consumers exercise at home during the pandemic.However, warmer weather and relaxation of pandemic restrictions have enabled more consumers to Back to the gym And outdoor activities. The company also faces competition from fitness competitors such as Mirror and Hydrow.
CEO John Foley said in a letter to shareholders: “The past year has been a turning point in the connected fitness industry. With the outbreak of the Covid-19 pandemic, people’s awareness and needs have increased significantly.”
Compared with the same period last year, revenue for the fourth quarter ended June 30 increased by 54% to $937 million. This growth was slower than the 141% growth in the previous quarter, but exceeded analysts’ expectations of $927 million.
Subscription revenue increased by 132% year-on-year to US$281.6 million.Sales are partially affected Recall its Tread+ and Tread After reports of machine injuries and 1 death,
The company reported a net loss of US$313.2 million or US$1.05 per share, compared with a profit of US$89.1 million or 27 cents per share in the same period last year.
Peloton also pointed out that its internal control of financial reporting related to inventory valuation has “significant flaws”, but said that “this did not lead to a material misstatement in our financial statements or disclosures”, nor would it cause any revaluation of historical performance. Narrated.