在2020年的大部分时间里，当健身房因新冠肺炎而关闭时，该公司掀起了一股愿意花费数千美元来燃烧卡路里的居家消费者浪潮。如此高的需求导致供应链陷入混乱，迫使Peloton支付更多资金以加快交付速度。随着年底的临近，Peloton的季度收入首次飙升至超过10亿美元。
Investors in Peloton woke up last Thursday. Many expect the online fitness equipment maker to report a slowdown in sales. As the gym reopened, outdoor running and holidays began. But what investors didn't expect was a 20% drop in the price of the company's best-selling product and an increase in marketing spending.
Growth is slowing and profit margins are low
On Friday, Peloton reported a higher-than-expected fourth-quarter loss.
For most of 2020, when the gym was closed because of COVID-19, the company unleashed a wave of home consumers willing to spend thousands of dollars to burn calories. Such high demand has thrown the supply chain into chaos, forcing Peloton to pay more to speed up delivery. As the end of the year approached, Peloton's quarterly revenue soared to more than $1 billion for the first time.
In the fourth quarter of fiscal 2019-just two years ago-Peloton had 511000 online fitness users. Today, the company owns 2.33 million. These subscribers pay $39 a month to access Peloton's digital exercise content.
Its shares have also gone up all the way. Peloton was the Nasdaq last year.One of the biggest gainers in the 100 index, its share price rose by 434% in 2020. But its shares have fallen nearly 30% so far this year, closing at $104.34 on Friday as investors focus on a new reality.
Wall Street is divided over the stock's next move. The average analyst target price is $133.40. That is well above the 52-week low of $68.06 set in August last year, but well below the all-time high of $171.09 set in January.
Peloton's path to profitability is changing.
In the latest quarter ended June 30, the company's total gross profit margin fell to 27% from nearly 48% in the same period last year, as costs associated with treadmill recalls and additional transportation costs eroded profits.
Higher marketing spending
Peloton has cut the price of its bikes and will significantly increase marketing spending in the coming months in response to more competition in the connected fitness sector. Its sales and marketing expenses in the most recent quarter increased by 172% compared with the same period last year.
Peloton has previously said it sees an opportunity to reach about 15 million households around the world and sell 20 million devices, of which 2.33 million have been sold so far.
However, BMO Capital Markets analysts believe that Peloton is far from achieving this, and that lowering bicycle prices may not be enough as a catalyst to achieve the goal.
Negative news affects new audiences
Peloton's growth in the treadmill category has been suspended after it recalled its Tread and Tread+ machines after reports of injuries and the death of a child. The company is currently facing several lawsuits, and on Friday the Justice Department and the Department of Homeland Security subpoenaed the company for more information on the matter.
