(Reuters) -Peloton Interactive Inc on Thursday cut its full-year forecast by at least $600 million, saying demand for its exercise bikes and treadmills was slowing faster than expected as people return to pre-pandemic habits.
Its shares plunged 26% in extended trading as the home fitness leader said it expected annual sales between $4.4 billion and $4.8 billion, down from $5.4 billion previously.
“The primary drivers of our reduced forecast are a more pronounced tapering of demand related to the ongoing opening of the economy, and a richer than anticipated mix of sales to original bike,” Peloton said in a statement.
The company had cut the price of its original bike by $400 to $1,495 in August and raised ad spending to keep pace with last year’s boom.
But competition from reopening gyms and people stepping out more this year has hit sales. A global chip crunch, steel supply disruptions and rising freight costs have also piled on the pressure.
The company’s holiday-quarter sales forecast of $1.1 billion to $1.2 billion was also below analysts’ expectations of $1.51 billion, according to Refinitiv data.
Revenue for the quarter ended Sept. 30 rose 6.2% to $805.2.
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