Peloton continues on a downward spiral with its latest earnings report.
The connected fitness giant generated $616.5 million in revenue in fiscal Q1 2023, down from $805 million for the same period the year prior. Peloton failed to meet its own quarter expectations of projected revenue between $625 million and $650 million.
- Peloton reported 6.7 million subscribers in fiscal Q1, up from 6.3 million in Q1 2022.
- But shares of the company have plummeted nearly 95% since their high of $160 in 2020.
- It reported a $408.4 million loss in Q1 2023, after a $1.3 billion loss in fiscal Q4 2022.
In October, Peloton announced 500 layoffs, marking its fourth round of job cuts in 2022. The company now has roughly 3,800 employees, down from more than 8,600 at one point in 2021.
The company also saw its lawsuit against Lululemon dismissed. Lululemon believed that Peloton infringed on patents for apparel design, and Peloton later sued, claiming there were no trademark violations.
A California federal court claimed Peloton’s suit was “clearly an anticipatory action that warrants dismissal.”
In September, Peloton took a different approach to drive profits by securing its first brick-and-mortar deal with Dick’s Sporting Goods — America’s largest sporting goods retailer.
As part of the deal, Peloton will sell select equipment in Dick’s stores, which marks the first time the company’s products have been sold in retail locations outside its namesake stores.