Peloton Tumbles on Downbeat Forecast, Accounting Problem
- The company says it found ‘material weakness’ with finances
- Peloton also is cutting price of its most popular bike
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Peloton Interactive Inc. slumped in late trading after the fitness company warned that a price cut would hurt its bottom line this year and that it found a problem with the way it accounts for inventory.
The shares fell as much as 15% to $97 following the release of its quarterly results and a worse-than-expected outlook for fiscal 2022. The price cut, also announced Thursday, will lower the cost of Peloton’s most popular bike by $400 to $1,495, part of a bid to make the upscale product more mainstream. And Peloton is now offering financing plans that last as long as 43 months, up from 39 months, which will lower monthly payments for its higher-end bike and treadmill.