Peloton Interactive has said a decision to slash the price of its flagship bike by a fifth would hit near-term profitability, sending its shares down sharply.
The fitness equipment-maker also reported a larger fourth-quarter loss than expected and forecast first-quarter revenue of $800 million (€680.6m), below market estimates of $1.01 billion.
The price cut to $1,495 from $1,895 for its Peloton Bike across all markets and a shift in product sales mix to its treadmill weighed on the outlook.
“Looking ahead we expect to return to adjusted Ebitda profitability for the full year 2023,” Peloton said in a statement.
Shares were trading close to 9 per cent weaker in early US trading on Friday.
The New York-based company posted a net loss attributable to Class A and Class B shareholders of $313.2 million, or $1.05 per share, compared with a profit of $89.1 million, or 27 cent per share, a year earlier.
Analysts on average were expecting a loss of 45 cent per share, according to IBES data from Refinitiv.
Peloton’s fourth-quarter revenue rose 54 per cent to $936.9 million. – Reuters
