Connect with us

Headlines

Peloton Posts a Mammoth Loss of $757 Million, Preps Subscription Price Hike

The per-share deficit was far from what Wall Street expected

mm

Published

on

A Peloton store on Main Street in Westport, CT. is seen in February. The fitness equipment manufacturer on Monday announced the departure of two of its founders. PHOTO MIROMIRO ISTOCK

Peloton (New York) said it lost $757 million in its first quarter, dwarfing the deficit Wall Street expected, per CNBC.

In the three-month period ending March 31, the loss per share was $2.27, far from the $0.83 per-share-loss as predicted by analysts. Revenue dropped from $1.26 billion a year earlier to $964.3 million.

To mitigate the impact of reduced demand for its connected fitness equipment, Peloton is planning a price increase for its subscription services, the article says. However, there’s concern this hike will prompt cancellations.

Barry McCarthy, CEO of Peloton, says he believes he can get the company free cash flow-positive by 2023. Recently, the brand also entered into a commitment with Goldman Sachs and JPMorgan to borrow $750 million in five-year term debt.

Advertisement

FEATURED VIDEO

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design

Promoted Headlines

Advertisement
Advertisement

Subscribe

Advertisement

Facebook

Most Popular