Ever have one of those days where everything just goes wrong? Home-workout company Peloton just had one of those days, every day, for a whole quarter.
During last year’s lockdowns, Peloton capitalized strongly on the shift to work-from-home, selling thousands of its $2,000+ bikes throughout the pandemic and building up a fanatic fanbase.
This year hasn't been as easy. At the time of writing, the company's share price is down more than 33%. That’s a Tour de France-worthy crash.
Probably the most worrying trend in Peloton's numbers is also the simplest: people just aren't using their Peloton as much as they used to. The number of tracked workouts fell for the second quarter in a row, and the average member is using their Peloton about 20% less than they did this time last year.
On top of that, the financials aren't good. Revenue did grow six percent relative to last year, but that was below expectations, and boosted by a heavy slash in the price of a Peloton. The company was hoping that the lower price would whip up crazy demand.
That never happened.
What did happen was Peloton's gross profit margin fell to 12%, from 39% a year earlier, guiding the company to an overall operating loss of $360m for the quarter.
Oh, and the company is having supply chain issues, like everyone else.