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• Peloton reported total revenue of $1.8 billion for the fiscal year ended June 30, 2020,
• For fiscal 2022, it reduced its projection for the apparel division from more than $200 million to $150 million
Reports revealed that Peloton Interactive Inc. (NYSE: PTON) slashed its sales projection for 2022 for its apparel business.
CNBC reported that the momentum in the apparel unit, run by CEO John Foley’s wife, seemed to be fading heading into the next year after apparel revenue more than doubled to over $100 million from 2020 to 2021.
Peloton reported total revenue of $1.8 billion for the fiscal year ended June 30, 2020. Out of this, its apparel business brought in roughly $41 million in revenue by selling 800,000 units, reported CNBC.
In an internal presentation accessed by CNBC, the company predicted tremendous growth in apparel in 2021 and said that it didn’t have enough supply to keep pace with demand. Peloton’s total revenue was $4 billion in the fiscal year ended June 30, 2021. Of this, it drew in $107 million in revenue, selling just under 2 million units of apparel.
For fiscal 2022, had initially forecasted that its apparel division would have more than $200 million in annual revenue. With five months left to go, it changed its stance to see closer to $150 million in apparel sales, saying multiple “macro factors,” including supply chain constraints, created challenges for the business.
CNBC reported that it was unclear whether these revenue figures were audited or whether the 2022 projections have been adjusted since the date of the presentation.
Meanwhile, company executives and insiders sold $496 million worth of their shares in 2021, before the stock dropped down drastically more than 80% from its highs.
The stock continues to be volatile, and the company is yet to address specific questions around overall demand for Peloton’s products.
Picture Credits: Reuters