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Peloton shares plunge on disappointing holiday-quarter forecast -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO : After the ringing (September 26), of the opening bell, a Peloton fitness bike was seen at the Nasdaq Market website in New York City. REUTERS/Shannon Stapleton/File Photo

(Reuters) – Peloton Interactive Inc forecast that holiday quarter sales will be lower than market expectations due to supply chain problems. The company’s inability to satisfy demand caused its stock price drop 26% on Thursday.

It said that it expects second-quarter sales to reach $1.1 billion to $1.2 million. According to Refinitiv, analysts expected $1.51 trillion.

Peloton (NASDAQ) has also reduced its forecast for annual sales to $4.4 billion or $4.8 billion from $5.4 billion.

Peloton’s global chip crunch and steel supply disruptions have caused delays in shipments, which has hindered the company’s efforts at increasing market share by price cuts.

Peloton posted a net loss in the quarter that ended September 30, at $1.25 per share. This compares to a profit of $69.3million, which is 20 cents, one year ago.

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