(Reuters) – Peloton Interactive on Wednesday forecast first-quarter revenue below Wall Street estimates as a shift in consumer spending toward travel and experiences hurt demand for its exercise equipment, sending its shares 14% down before the bell.
The New-York based company that benefited from a surge in demand for its connected bikes during the pandemic has seen a sharp revision in demand post pandemic as people also return to gyms.
Consumers also cut back on discretionary spending amid a series of interest hikes over the past year stoking fears of an economic downturn.
Peloton’s revenue in the fourth quarter fell to $642.1 million from $678.7 million a year earlier.
Revenue from connected fitness products fell to $220.4 million from $295.6 million, while subscription revenue were up to $421.7 million from $383.1 million a year earlier.
The company now expects first-quarter revenue between $580 million and $600 million, below analysts’ average estimate of $655.9 million, according to Refinitiv data.
(Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli)
