Peloton forecasts weak second-quarter revenue
(Reuters) -Exercise equipment maker Peloton Interactive (NASDAQ:PTON) Inc on Thursday forecast second-quarter revenue below Wall Street estimates, as sticky inflation keeps discretionary spending in check.
Shares of the company fell 7.5% at $4.45 in premarket trade.
Peloton said it expects second-quarter revenue between $715 million and $750 million, compared with analysts' average estimate of $763.3 million, according to LSEG data.
The New York-based company, which saw a surge in demand for its connected home fitness equipment during the pandemic, has seen sales plummet amid a shift in consumer demand.
Peloton's objective of returning to a positive cash flow by fiscal 2023 was delayed by a recall of 2.2 million exercise bikes following a seat issue and a $75 million settlement agreement with DISH Technologies.
The company reported losses for the eleventh quarter in a row.
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