Shares of Peloton, a pandemic-era stock darling, tanked nearly 20% on Thursday after reporting a sixth consecutive quarter of losses, as the at-home fitness company continues to struggle with declining sales and excess inventory.
Peloton’s stock fell more than 18% to $11 per share following the dismal earnings release, which showed the fitness company took a $1.2 billion loss in the latest quarter, in part due to “restructuring charges related to inventory and supply chain issues.”
The declines come just a day after the stock jumped more than 20% thanks to the announcement of a new partnership with Amazon to sell Peloton’s exercise bikes, its first big deal with another retailer.
Peloton’s quarterly revenue came in at around $679 million, a 28% decline from nearly $937 million a year ago and short of the $718 million expected by analysts, according to Refinitiv data.
The at-home fitness company’s disappointing quarterly earnings fell well short of Wall Street forecasts as sales continued to decline and losses widened, with Peloton warning that its business could continue to struggle amid “broader macroeconomic uncertainties.”
Peloton, which ended the quarter with nearly 3 million connected fitness subscriptions, is now forecasting that number to stay flat in the current quarter, predicting revenue of between $625 million and $650 million.
CEO Barry McCarthy, who took the top job in February, said in a shareholder letter that there has been “steady progress” with efforts to turn around the business, although there is still “work to do” as the company seeks to reach break- Even cash flow in the second half of 2023.