A.D. In early 2020, one night, people’s homes were transformed from a home to an office, a fun time zone and a gym – a good thing for Peloton and other companies that are ready to enter and serve consumers. Connected fitness experience, closure and public health orders.
Now, 19 months later, the party seems to be over. Peloton told analysts and investors this week that Internet traffic had fallen sharply in the past two months and that it was slower than expected in the retail space, despite the fact that Treadmill had done so and reduced prices. Original bike for $ 400. In the three-month period, which ended June 30 and 20.7 a year ago, it dropped to 16.6 per month from 19.9 per month.
This, coupled with the ongoing supply chain challenges in all industries, has reduced Peloton’s 2022 fiscal year growth and revenue expectations, which exceeded previous estimates by more than two months.
Meanwhile, Planet Fitness – which fought hard during the epidemic, as many gymnasiums did – cut past revenues on Thursday (November 4), and executive membership rates reached an all-time high of 97%. The number of members increased to 15 million for the third consecutive year, an increase of 200,000 compared to the previous quarter.
Chief Executive Officer of Planet Fitness Chris Rondeau He told analysts that Generation Z is higher than other age groups in terms of enrollment, which is “obvious, because half of the generation is enough to join.”
Following the company’s earnings report, Peloton’s stock fell more than 30 percent on Friday (November 5). Planet fitness, on the other hand, has increased by about 5%, and stock prices have increased by more than 20% during the week. BichBod, another affiliated fitness company, saw its stock fall nearly 4 percent on Friday.
Over the past several months, Peloton has been rolling out new products to attract consumers, knowing that explosion growth will not last forever. The company launched a corporate security program in the summer and a personal identification line in September. Peloton is also reportedly developing a wearable technology such as the Armband heart rate monitor, and chief executive John Foley said analysts expect more announcements in the coming weeks and months.
At the same time, however, Peloton was dealing with the recall of treadmill products after reporting one death and dozens of damage to the machines. The company, which opposed the sale of treadmills, finally volunteered in early May. A number of lawsuits have been filed in connection with the calls.
look forward to
Foley told analysts that he expects Peloton’s first quarter of July to September to be a “swimming pool” because the company sees less exercise during the summer and especially during the colder winter months. New Year’s resolutions are ready.
“We always expected the engagement to go down a bit. It’s just that there are gyms and people can leave their homes. ” “They are not closed… and there is only so much we can do to change that.”
In a recent interview with PYMNTS, Carl Dickler, CEO of BichBod, said he was looking at the importance of fitness in the future. “People love their gym, but they love the comfort of a mixed model – they practice in the gym when they have time, but the rest of the time at home,” he said. “That’s why fitness is here to stay here.”