Peloton shares plummet after quarterly losses top $1.2bn

Demand nosedived as gyms reopened following vaccinations, forcing the company to rejig its top management. Chief executive Barry McCarthy, a former Spotify and Netflix executive, has rolled out measures to cut costs through layoffs, store closures and outsourcing manufacturing, as well as reduce inventories since taking over in February.

In his latest effort, Peloton on Wednesday said it would start selling its fitness equipment on e-commerce giant Amazon in the United States, fueling a 20% jump in shares.

The restructuring resulted in $415m in charges and bloated its operating expense in the fourth quarter, leading to a net loss of $1.24bn.

In his letter, McCarthy noted that as a high school student he had worked on a cargo ship that had run into trouble. The crew managed a dramatic recovery.

The company, which in May warned of a cash-crunch, expects first-quarter sales to be in the range of $625m to $650m, below estimates of $783.28m, according to Refinitiv Ibes data.

Reuters contributed to this story