(Bloomberg) — Peloton Interactive Inc. expects to post another decline in sales in the current quarter, defying Wall Street’s predictions of a return to growth, as some of its comeback efforts have failed.
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The fitness technology company projected revenue of $700 million to $725 million during its fiscal third quarter, well below analysts’ average estimate of $755.6 million. This represents a decline from approximately $749 million in the year-ago period.
The outlook underscores Peloton’s struggle to recover from the post-pandemic downturn. Although sales during the holiday season were better than expected, Chief Executive Officer Barry McCarthy is still looking for ways to get the company back on the path to growth. A high-profile push into the college market, which began with a partnership with the University of Michigan, failed to drive sufficient sales and will be discontinued, he said.
“We continue to explore ways to drive growth in a variety of areas,” McCarthy said in a letter to shareholders. “Many of these new initiatives have performed strongly. “Some haven’t.”
The stock fluctuated in premarket trading in New York and was down about 3.1% at 8:25 a.m. Peloton shares are down 8.7% in 2024 ahead of its earnings reports in 2021, 2022 and 2023. 90% from its pandemic high.
McCarthy acknowledged that the company’s biggest challenge is growing “massively” and said revenue won’t start growing again until the fourth quarter, which runs through June. Peloton — known for its stationary bikes and online classes — is now facing two years of declining revenue, after a sales surge due to stay-at-home orders in the early days of…