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• The company forecasted total revenue of between $675 million and $700 million for the fourth quarter
Peloton Interactive Inc (NASDAQ: PTON) forecasts weak sales for the current quarter amid fading demand for its fitness equipment.
Peloton forecast total revenue of between $675 million and $700 million for the fourth quarter, than expectations of $821.7 million.
Last month, the company had hiked the price of its monthly subscriptions for online workout classes which has caused concerns regarding subscriptions cancellations. The fitness equipment company also lowered the price of its bikes and treadmills.
Shares of the company fell as much as 18% to a record low of $11.7 in early trading.
In the third quarter, revenue of Peloton plunged 23.6% while loss increased to $757.1 million, up from $8.6 million a year earlier.
CEO Barry McCarthy said, "Inventory has consumed an enormous amount of cash, more than we expected, which has caused us to rethink our capital structure."
Earlier this year, the company had replaced former CEO John Foley and laid off 2,800 employees to restructure its business after a drop in demand.
Picture Credits: Reuters
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