The company also slashed its full-year sales outlook and now expects a range of $3.7 billion to $3.8 billion. That’s down from a prior range of $4.4 billion to $4.8 billion, which it announced last November. It originally had expected $5.4 billion.
Peloton reported a net loss of $439.4 million, or $1.39 per share for its fiscal second quarter, which ended Dec. 31,2021, compared with net income of $63.6 million, or 18 cents a share, a year earlier. Total revenue increased more than 6% to $1.13 billion. Analysts had expected $1.24 per share on sales of $1.14 billion, according to FactSet.
In a conference call with analysts, Foley acknowledged that mistakes had been made and that the company invested too quickly.
“We own it. I own it and we are holding ourselves accountable,” Foley said. “That starts today.”
The company anticipates at least $800 million in annual cost savings once its actions are fully implemented.
Wall Street took the shakeup Tuesday as a pivotal moment for Peloton, including the odds of a sale.
“We believe Foley leaving makes it more likely that Peloton ultimately sells the company and the board clearly has major decisions to make in the days/weeks/months ahead,” wrote Wedbush analysts Daniel Ives and John Katsingris.