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PRODUCT NEWS
Peloton hits its first big hurdle as the company grapples with growing pains
27 Aug 2021 . BY Tom Walker
Peloton said it is lowering the price of its original Peloton Bike across all of its markets to US$1,495 / Peloton
Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.

Fourth-quarter results saw the company reporting losses of US$313.2m against profits of US$89.1m a year ago in spite of revenues having increased 54 per cent to US$936.9m.

Peloton is lowering the price of its original Peloton Bike across all markets to US$1,495 (€1,495, £1,350 GBP) – it's also introducing a longer, 43-month, 0 per cent financing term option for Bike+ and Tread across all regions.

In its financial update to investors, Peloton said: "In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales-mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth.

"Looking ahead, we expect to return to Adjusted EBITDA profitability for full year 2023.

"Connected Fitness Margin in Q1 will also be significantly impacted by last-mile delivery costs, given the seasonality in our business.

"Peloton’s last-mile logistics is an important aspect of our member experience, but the fixed investments in warehouses, vehicles and people in our delivery network are carried throughout the year.

"Therefore, we will experience fixed-cost inefficiencies during our smaller volume first quarter, but expect significant leverage of these expenses in the remaining quarters of FY 2022."

Following the announcement, shares in Peloton fell by 15 per cent (to US$97), before recovering to around US$107 at the close of markets.

Peloton was one of the big "winners" of the pandemic, as people flocked to connected and digital fitness products and services as health clubs and studios were forced to close their doors.

Sales of Peloton products surged during 2020 and into 2021, more than doubling to US$4bn in the year to 30 June 2021, however, it recalled its treadmills in the US, following the death of a child, resulting in a significant financial and reputational hit.

To read Peloton's letter to investors in full, click here.


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Jobs    News   Products   Magazine
PRODUCT NEWS
Peloton hits its first big hurdle as the company grapples with growing pains
27 Aug 2021 . BY Tom Walker
Peloton said it is lowering the price of its original Peloton Bike across all of its markets to US$1,495 / Peloton
Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.

Fourth-quarter results saw the company reporting losses of US$313.2m against profits of US$89.1m a year ago in spite of revenues having increased 54 per cent to US$936.9m.

Peloton is lowering the price of its original Peloton Bike across all markets to US$1,495 (€1,495, £1,350 GBP) – it's also introducing a longer, 43-month, 0 per cent financing term option for Bike+ and Tread across all regions.

In its financial update to investors, Peloton said: "In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales-mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth.

"Looking ahead, we expect to return to Adjusted EBITDA profitability for full year 2023.

"Connected Fitness Margin in Q1 will also be significantly impacted by last-mile delivery costs, given the seasonality in our business.

"Peloton’s last-mile logistics is an important aspect of our member experience, but the fixed investments in warehouses, vehicles and people in our delivery network are carried throughout the year.

"Therefore, we will experience fixed-cost inefficiencies during our smaller volume first quarter, but expect significant leverage of these expenses in the remaining quarters of FY 2022."

Following the announcement, shares in Peloton fell by 15 per cent (to US$97), before recovering to around US$107 at the close of markets.

Peloton was one of the big "winners" of the pandemic, as people flocked to connected and digital fitness products and services as health clubs and studios were forced to close their doors.

Sales of Peloton products surged during 2020 and into 2021, more than doubling to US$4bn in the year to 30 June 2021, however, it recalled its treadmills in the US, following the death of a child, resulting in a significant financial and reputational hit.

To read Peloton's letter to investors in full, click here.


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A £22 million redevelopment project will be unveiled at Grange Paddocks Leisure Centre, as part of the official launch of the state-of-the-art centre.
FitnessOnDemand launches new live-streaming feature for all fitness clubs and their members
FitnessOnDemand (FOD) [IHRSA BOOTH 1509] the leader in on-demand content from the world’s most innovative fitness brands and celebrity trainers, this month introduces a new platform evolution for all club operators and their customers.
Founder of dynamic yoga platform launches cinematic wellbeing classes for luxury spas and hotels
Matt Miller, founder of leading yoga training platform Broga has announced the launch of Earth+Sky – a collection of cinematic virtual wellbeing classes filmed in breath-taking locations around the world.
Humanising the member app experience
FunXtion has upgraded its White Label Member App with a raft of new features to support its partners in scaling up and keeping up with rising member expectations.
Are traditional gyms going to war with smart gyms?
CEO of Orbit4, Daniel Jones, says: “There’s no reason traditional gyms and smart gyms can’t live in harmony. With a little reorganisation and education, there’s a really bright future for all gyms.”
Leon Rudge appointed as new Myzone global head of product
Myzone is excited to announce that fitness innovation and technology expert, Leon Rudge, is joining the team as global head of product, in a move set to add over a decade of experience that benefits customers and end users alike.
CryoAction launches electronically-cooled whole body cryotherapy chambers
CryoAction has unveiled a new range of electric cryotherapy chambers with temperatures reaching as low as -140°C.
Shipping gym equipment from Europe to the UK
Despite the Prime Minister’s claims that trade with the EU would be tariff-free post-Brexit, the reality has become very different when importing gym equipment from the EU.
UK trust members smash ‘Road to Tokyo’ challenge
Members from UK leisure and cultural trusts have stepped up and logged an impressive 21.5million steps in a ‘Road to Tokyo’ challenge, as part of a free initiative from leisure & cultural marketing experts, Bigwave Marketing.
Active IQ Skills Hub helps fitness professionals boost skills in post-Covid market
Suffice to say that the pandemic has completely changed the way fitness professionals work and the way consumers work out – and therein lies opportunity.
Surge integrates Fisikal with HubSpot to drive business efficiencies and grow revenue
As Surge expands its offer with the launch of a third dedicated Electronic Muscle Stimulation (EMS) studio this summer – this time in Fleet Street, London – the brand reflects on the vital role of its estate wide digital ecosystem, created in partnership with Fisikal, designed to drive business efficiencies and commercial success.
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Indigofitness Ltd

We Create Training Spaces! We've been designing and delivering high quality training spaces for alm [more...]
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Retrofit London works with Technogym to create premium member experience
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+ More videos  

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+ More directory  
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31 Oct - 03 Nov 2021

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Ojai Valley Inn & Spa, Ojai, United States
09 Nov 2021

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+ More diary  
 


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Tel: +44 (0)1462 431385

©Cybertrek 2021

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