, Columnist
Peloton Discovers It’s Expensive to Go Downscale
The luxury fitness brand is struggling to attract less-affluent customers while having to advertise heavily to them for the post-pandemic era.
Peloton has to explain why this bike costs so much.
Photographer: Adam Glanzman/Bloomberg
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For luxury fitness brand Peloton, going mainstream is costing it dearly.
Shares of Peloton Interactive Inc. plunged 25% in after-hours trading Thursday after it issued a grim earnings report and outlook. The company, whose fiscal year ends in June, said full-year revenue may come in as much as $1 billion below its previous projection. Minutes later, investors had erased nearly $6 billion from its market value.