Peloton feels the burn 🚲

Peloton – Share price heading downhill

Remember lockdown… it sucked. But not for everyone. Lifestyle fitness brand Peloton saddled up and rode out COVID-19 like a champ, however it’s been downhill since. 🤔

We decided to look at what’s going on. 🕵️

When lockdown hit everyone was looking for at home fitness activities. Peloton was the new kid on the block with a flashy digital exercise bike. Sales climbed sharply and Peloton forecast this would continue. Fast-Forward to 2022 and the picture is quite different.

We’re finally escaping from our homes and the forecast new customer base has disappeared. Demand had been pulled forward rather than increasing the total number of customers.

Quantico Takeaway

Peloton assumed that new sales growth was sustained and invested to meet the demand but they were left with dropping sales and larger operational costs.

It’s been a weird couple of years so be careful before jumping into big business decisions don’t assume we’ve reached a new normal.