Peloton shares plunge on disappointing holiday-quarter forecast

FILE PHOTO: A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, September 26, 2019. REUTERS/Shannon Stapleton/File Photo

(Reuters) -Peloton Interactive Inc on Thursday forecast holiday-quarter sales below market estimates as supply chain issues hamper the home fitness leader’s ability to meet demand, sending its shares tumbling 26% after the bell.

The company said it expected second-quarter sales of $1.1 billion to $1.2 billion. Analysts expected a figure of $1.51 billion, according to Refinitiv.

Peloton also cut its annual sales forecast to between $4.4 billion and $4.8 billion, from the $5.4 billion projected previously.

A global chip crunch, steel supply disruptions and rising freight costs have delayed shipments of Peloton’s fitness bikes, hindering the company’s efforts to boost market share through price cuts.

Peloton reported a net loss of $376 million or $1.25 per share, for the first quarter ended Sept. 30, compared with a profit of $69.3 million, or 20 cents per share, a year earlier.

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