that the company would pause Bike production in February and March, and pause production of its Bike+ until June, citing internal documents. Peloton won’t manufacture its Tread treadmill machine for six weeks, beginning next month, CNBC reported.Shares were trading midday at $26.94. The shares are down 83% over the last 12 months and 70% over the last three. The company’s market value has tumbled from more than $50 billion to under $10 billion.
. It warned investors last year that its annual sales would miss the company’s expectations by 20% and that it was looking at ways to cut costs. Peloton ramped up production in early 2021 when it was racing to keep up with orders earlier in the pandemic when people pivoted to working out from home. But as people have resumed working out in gyms, demand for its machines has cooled. Peloton cut prices for its Bike by about 20% last year.
Peloton paid $420 million to acquire Precor Inc., one of the biggest global manufacturers of fitness equipment, and announced plans in early 2021 to build a $400 million factory in Ohio. Peloton previously said that it believes the company has the right amount of capacity and that it is taking “significant corrective action” to improve profitability in future quarters. After posting a quarterly loss, Peloton announced in November
Dang! The first time I saw this, it was Enron. Might as well AMCSTOCK since couch potatoes save lives.
CEO comments: 'As we discussed last quarter, we are taking significant corrective actions to improve our profitability outlook and optimize our costs across the company. This includes gross margin improvements, moving to a more variable cost structure…”