New York CNN —Peloton shares slid more than 20% Thursday after the fitness company said it expects to report another loss in the current quarter and is trimming its full-year revenue forecast, signaling that its several years-long turnaround is spinning out.
CEO Barry McCarthy wrote in a letter to investors that some of his ideas have failed, including a push into selling Peloton bikes with college colors.
McCarthy revealed that the company “sold substantially fewer bikes to alumni and boosters than we expected.” The short-lived program will be discontinued.
He said the experience has “tarnished our brand” and that the busy holiday shipping season was “particularly taxing” for customers.
The connected fitness company adjusted its full-year revenue lower from the previous $2.7 billion to $2.8 billion expected, with Peloton now forecasting it to be between $2.68 billion and $2.75 billion.
Persons:
Barry McCarthy, McCarthy, Lululemon “, TikTok
Organizations:
New, New York CNN, Sporting Goods, Consumer Product Safety
Locations:
New York