Peloton’s uphill ride to get more sales is getting rougher as more people return to gyms and other pre-pandemic exercise routines and embrace cheaper options.
The maker of high-end exercise bikes and treadmills, once highflying in the early days of the pandemic, on Tuesday reported mounting losses and slowing sale. It also offered a bleak sales outlook for the current quarter and said it had signed a commitment to borrow hundreds of millions of dollars, raising questions for some investors about the chances of a turnaround.
“Peloton has a lot of work to do to convince investors that the business model still works,” said Neil Saunders, managing director of GlobalData Retail. ”It’s coming off a high. People were at home and wanted to stay fit. But now people are starting to go back to the gyms. They want the social aspect.”
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