Peloton Shares Plummet Amid Lowered Sales Forecast

The fitness company faces challenges with growth and customer service, as it downgrades its revenue guidance for the current financial year.

Peloton's shares fell by almost 25% after the company cut back its sales forecast due to lackluster demand for its high-end equipment.
The company expects its revenue to fall by about 5% during the current quarter, to as low as $700m, and adjusted losses are estimated to widen from $18.7m to as much as $30m.
Peloton downgraded its guidance for revenue during its current financial year, from between $2.7bn and $2.8bn to between $2.68bn and $2.75bn.
Sales at the firm fell 6% to $743.6m in the three months to December, and net losses narrowed from $335m to $195m.
Peloton's CEO, Barry McCarthy, acknowledged the company's challenges with growth and expressed disappointment with the performance of the member support customer service unit.