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The company’s shares tumbled more than 14% to $11.59 in premarket trading, set to add to the more than 60% drop so far this year.
Operating expenses soared 110% to $1.17 billion in the three months to June 30 after the company recorded several one-time charges for its recent restructuring efforts.
The company’s exercise bikes, priced at above $1,400, treadmills and connected classes were all the rage among fitness enthusiasts during COVID-19 lockdowns. But as gyms reopened following vaccinations demand nosedived.
In response, the company has tapped technology industry veterans as chief executive officer and chief financial officer. Since taking over in February, Chief Executive Barry McCarthy, who has previously worked at Spotify Technology SA (NYSE:SPOT) and Netflix Inc (NASDAQ:NFLX), has focused on cost cuts through layoffs and store closures, outsourcing manufacturing and slimmer inventories.
“I think Q4 will have been the high water mark for write-offs and restructuring charges related to inventory and supply chain issues and the beginning of the comeback story for Peloton (NASDAQ:PTON),” McCarthy said in a letter to shareholders.
Net loss attributable to Class A and Class B common stockholders widened to $1.24 billion, or $3.68 per share, in the quarter, from $313.2 million, or $1.05 per share, a year earlier.
Sales fell about 28% to $678.7 million.
