Once a winner of the Corona crisis: the peloton boom is noticeably easing again

Once a winner of the corona crisis
Peloton boom is noticeably decreasing again

In the pandemic, business with exercise bikes from the manufacturer Peloton is booming. But now many fitness studios are opening their doors again. The sales growth at Peloton has recently declined noticeably. In addition, the company warns of new burdens – investors are scared.

After the boom in the Corona crisis, growth at the fitness equipment specialist Peloton is slowing down significantly. In the most recent fiscal quarter to the end of July, the company increased revenues year-on-year by a hefty 54 percent to $ 936.9 million (797.0 million euros), as it announced after the US market closed. In the previous quarter, however, sales had more than doubled to over a billion dollars.

Peloton 90.94

In addition, Peloton warned that higher costs and sharp price reductions for some products are likely to weigh on the balance sheet in the current quarter. That was not well received by investors – the share initially fell by 15 percent after the hours of trading. The fact that Peloton admitted an unspecified accounting problem also caused nervousness. Nevertheless, the share price quickly recovered somewhat.

The company didn’t make any money in the past quarter – the loss was $ 313 million. In addition to selling expensive fitness bikes and treadmills, Peloton generates revenue through subscription fees for digital offers such as training courses.

In the pandemic, the company experienced an onslaught of customers. But not least because many fitness studios have now reopened, growth is slowing. In addition, Peloton is confronted with increasing competition in the market for fitness equipment for home use, which is probably one of the reasons for the strong discounts on workout bikes. In addition, stores recently suffered from a temporary halt in sales of the Tread + peloton treadmills, which had to be recalled in May due to a number of accidents.