It would be interesting to see if all the overly enthusiastic spin instructors on the Peloton classes might not be so fired up going forward now that the stock price for Peloton has tanked.
Make no mistake about it, fitness freaks don’t mind working out at home if it’s their only option, but if health clubs, gyms and parks are open they will be heading back in droves.
The Peloton stock price was down 32% after the company cut their 2022 guidance because their second quarter was “softer than anticipated.”
The company is now forecasting $4.4 billion to $4.8 billion in total revenue for 2022, down from a pretty aggressive $5.4 billion they were hoping to ring up.
Here’s a little excerpt from a prepared statement. “The primary drivers of our reduced forecast are a more pronounced tapering of demand related to the ongoing opening of the economy, and a richer than anticipated mix of sales to original bike. ”
I think what they are saying is they wished people were still locked down, unable to leave their houses. Sales were so much better for the company then.
The CEO of the company John Foley was backpedaling so fast on his statement that it was the equivalent of a 2-hour workout on one his expensive stationary bikes. “As we prepared our previous guidance, we had to make assumptions about consumer behavior coming out of COVID, the impact of our original Bike price reduction and the cost structure within our Connected Fitness segment, all against the backdrop of a global supply-chain crisis. While we have had to manage carefully around many issues such as component shortages, elevated freight costs and increased transportation costs, I’m proud of our team who has moved mountains to ensure that we have ample inventory across our portfolio ahead of the holiday season.”
File this under “I should have seen this coming. It’s more fun to work out with other people.”
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