Peloton shares plunge on gloomy set of quarterly results after pandemic sales boom runs out of puff
Shares in Peloton plunged after it delivered a gloomy set of quarterly results.
The exercise bike and treadmill maker saw sales boom during the pandemic as people turned to its high-end equipment to keep fit while stuck at home during lockdown.
But following the easing of restrictions, rollout of vaccination programmes and reopening of gyms Peloton has struggled to generate sales.
Exercise bike and treadmill maker Peloton said losses in the three months to the end of March ballooned to £616m compared with a £7m loss in the same period a year ago
The firm said losses in the three months to the end of March ballooned to £616million compared with a £7million loss in the same period a year ago.
Revenues, meanwhile, dropped by nearly a quarter to £784million.
Boss Barry McCarthy announced that earlier this week the firm had signed a deal to borrow £610m from JP Morgan and Goldman Sachs to shore up its ‘thinly capitalised’ balance sheet.
The firm’s outlook also fell short of expectations, sending the stock tumbling 13.4 per cent to $12.24 on Wall Street.
It peaked close to $170 a share early last year but has fallen more than 90 per cent since then.