Add one more to Peloton’s long list of problems: apparel sales.
The beleaguered at-home fitness company reportedly slashed its projected apparel revenue for fiscal 2022 from $200 million to $150 million.
Peloton’s apparel division more than doubled its sales to $107 million in the fiscal year ended June 30, 2021. While it previously worked with other athleisure makers, the company launched its private line, Peloton Apparel, in September 2021.
- The company cited supply chain issues and other “macro factors” for the reduced estimate for the fiscal year ending June 30, 2022, according to a November presentation seen by CNBC.
- In its fiscal Q1 2022 earnings, Peloton’s guidance for the full fiscal year included $4.4 billion to $4.8 billion in total revenue and an adjusted EBITDA loss of $425 million to $475 million.
Peloton also got some unfavorable legal news when the U.S. Patent Office ruled that two of its patents related to streaming and on-demand classes are not patentable because the underlying technologies are not sufficiently unique.
Peloton sued at-home fitness rival Echelon in 2019 for patent infringement on its technology, and Echelon countersued, challenging the validity of the patents.
Undeterred by its recent struggles, Peloton released a heart-rate-monitoring armband on Monday. The $90 device integrates with Peloton’s apps and connected machines. The armband creates an alternative to its $49 chest strap, which has similar functions.
A push into wearables has been anticipated ever since Peloton acquired Atlas Wearables in March 2021.