Peloton stock continues rally as company replaces John Foley as CEO

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Peloton soars after news of CEO change and large-scale job reduction

Peloton Interactive Inc.’s newly announced chief executive will face a lowered bar as the maker of exercise equipment once again cut its full-year forecast in the face of slowing demand.

Peloton further discussed a new cost-cutting program that it expects could bring at least $800 million of annual-run rate savings once fully implemented. In doing so, the company will cut about 2,800 positions globally and reduce its corporate positions by roughly 20%. It will scale back its owned and operated warehouses while boosting its arrangements with third-party logistics services.

The company acknowledged in a letter to shareholders that it’s experiencing a “humbling time” as it adjusts to changing demand dynamics brought on by the reopening of the economy. Peloton’s newly announced outlook for the fiscal-third quarter and the balance of its full fiscal year came in below expectations.

The company also anticipates an Ebitda loss of $625 million to $675 million, whereas analysts had been projecting a $463 million loss on the metric. Peloton forecasts 3.0 million subscribers for its Connected Fitness offering by the end of the fiscal year, while the FactSet consensus was calling for 3.27 million.

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Peloton CEO Steps Down, Company Cuts Nearly 3,000 JobsJohn Foley acknowledged that mistakes had been made at his company and that they invested too quickly. I guess he finally realized that customers had done the calculation: We can’t afford the Peleton bike and the $1.5 million house to put it in, like the commercials.
Fuente: HuffPostWomen - 🏆 27. / 68 Leer más »