Delta Air Lines integrates Peloton classes to its flights 0:56
(CNN) -
Peloton investors will have to take a meditation class (or several) after their latest earnings report sent their shares down about a third.
The once-
hot fitness
company
reported late Thursday that sales of its exercise bikes and treadmills, which account for 60% of its business, fell 17%.
Revenue grew just 6% to $ 805 million, which was below analysts' expectations.
In a call with analysts, Peloton CFO Jill Woodworth said it is "clear that we underestimate the impact of the reopening on our company and the industry as a whole."
Simply put, more people are returning to traditional gyms or buying from a Peloton rival.
Planet Fitness shares closed 12% higher this Thursday after reporting a solid earnings report and revealing that its membership levels nearly returned to their pre-pandemic peak of nearly 16 million.
Its stock is up 25% during the year.
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Demand for its products is also slower than expected, prompting Peloton to trim its full-year sales outlook to $ 4.4 billion and $ 4.8 billion, which is roughly $ 1 billion less than forecast. previously.
Peloton's decision to cut the price of its low-end bike by 20% to $ 1,495 in August was also a disappointment.
"While the price drop led to conversion rates that exceeded our forecast, overall traffic has not met our initial expectations," admitted Woodworth.
The news erased about $ 9 billion from Peloton's market value, a stark contrast to 2020 when it was one of the biggest winners during the covid-19 pandemic.
The stock is on track to lose about 70% so far this year.
Platoon
