Peloton made a Q4 loss of $313.2m
Peloton, the maker of exercise bikes, has cut the price of its products as people are returning to gyms over doing exercise at home.
As of Thursday the American company will cut the price of its less expensive machine to $1,495, a reduction of around 20%.
This change will come into effect across all of the markets it operates in, including Australia, Canada, Germany and the UK.
Peloton’s decision came after its losses widened in Q4 and it saw a slowdown in its revenue growth.
The bike maker made a Q4 loss of $313.2m, or around $1.05 per share, which surpassed expectations, with the original forecast at around 44 cents per share.
“In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth,” the company said in a letter to shareholders.
Demand for the Peloton’s goods surged during the lockdowns, as many sought an escape from the stresses of being lockdown for hours at a time.
It even reached a point whereby the company struggled to keep up, such were demand levels.