Peloton CEO Barry McCarthy described its fiscal quarter as the best he has seen with the company, but investors were left cold.
The connected fitness giant booked $748.9 million in the fiscal third quarter ending March 31, missing analyst expectations and causing the company’s stock to tumble 13.5% on Thursday.
Peloton lost an unexpectedly large $275.9 million in the quarter as it continues to struggle with supply chain issues and slackening demand following the end of pandemic closures.
In May, McCarthy said that the company “will relaunch our brand” to target fitness enthusiasts of all kinds, as opposed to the brand’s original core proposition based on at-home cycling. He also said the company would relaunch the Peloton app with a tiered membership structure, calling those campaigns “two of our most important growth initiatives.”
McCarthy touted the company’s 5% year-over-year uptick in connected fitness subscribers, but acknowledged that growth in that category tends to dip in Peloton’s fiscal fourth quarter — and he expects the same to happen this year.
The company has sought to broaden its reach through renting out its equipment and selling refurbished bikes.
Thus far, Peloton has been unable to reverse its tailspin since its acme in late 2020. The company’s stock has fallen 95.3% since and now sits below where it was prior to the pandemic.
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