Peloton slides 21% as gloomy forecast douses hopes of quick turnaround

Peloton Interactive Inc (NASDAQ: PTON) on Thursday forecasted its first-quarter revenue below Wall Street estimates, suggesting that its recently launched turnaround efforts will take more time to revive the declining sales of its fitness equipment.

Shares of the exercise bike maker tumbled almost 21% to $10.66, adding to a nearly 70% drop so far this year.

Although Peloton’s exercise bikes and treadmills were all the rage among fitness enthusiasts during COVID-19 lockdowns, the demand for its products plunged as gyms reopened following vaccinations and reopening.

Chief Executive Barry McCarthy has focused on cost cuts through layoffs and store closures, outsourcing manufacturing and slimmer inventories since taking over in February.