GET HCM
magazine
Sign up for the FREE digital edition of HCM magazine and also get the HCM ezine and breaking news email alerts.
Not right now, thanksclose this window
Technogym
Technogym
Technogym
Follow Health Club Management on Twitter Like Health Club Management on Facebook Join the discussion with Health Club Management on LinkedIn Follow Health Club Management on Instagram
UNITING THE WORLD OF FITNESS
Health Club Management

Health Club Management

News

Peloton hits its first big hurdle as the company grapples with growing pains

Shares in Peloton have fallen after the company revealed it was cutting the price of its original Bike to US$1,495
Results for Q4 saw a loss of US$313.2m against profits of US$89.1m last year
Peloton also predicts its expenses will increase during 2022, impacting margins
The company recalled its treadmill recently in the US, following the death of a child

Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.

Fourth-quarter results saw the company reporting losses of US$313.2m against profits of US$89.1m a year ago in spite of revenues having increased 54 per cent to US$936.9m.

Peloton is lowering the price of its original Peloton Bike across all markets to US$1,495 (€1,495, £1,350 GBP) – it's also introducing a longer, 43-month, 0 per cent financing term option for Bike+ and Tread across all regions.

In its financial update to investors, Peloton said: "In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales-mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth.

"Looking ahead, we expect to return to Adjusted EBITDA profitability for full year 2023.

"Connected Fitness Margin in Q1 will also be significantly impacted by last-mile delivery costs, given the seasonality in our business.

"Peloton’s last-mile logistics is an important aspect of our member experience, but the fixed investments in warehouses, vehicles and people in our delivery network are carried throughout the year.

"Therefore, we will experience fixed-cost inefficiencies during our smaller volume first quarter, but expect significant leverage of these expenses in the remaining quarters of FY 2022."

Following the announcement, shares in Peloton fell by 15 per cent (to US$97), before recovering to around US$107 at the close of markets.

Peloton was one of the big "winners" of the pandemic, as people flocked to connected and digital fitness products and services as health clubs and studios were forced to close their doors.

Sales of Peloton products surged during 2020 and into 2021, more than doubling to US$4bn in the year to 30 June 2021, however, it recalled its treadmills in the US, following the death of a child, resulting in a significant financial and reputational hit.

To read Peloton's letter to investors in full, click here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.
HAF,FIT,IND,PTS,SAM,TEC
2021/THUMB348361_615233_37770.jpg
Latest News
Boutique operator 1Rebel has launched its first 1Rebel Labs Studio at its club in Holborn. ...
Latest News
The Local Government Association (LGA) has called on the UK government to invest £875m in ...
Latest News
Anthony Hamilton, the father of F1 racing driver Lewis Hamilton, is launching a fitness equipment ...
Latest News
The pandemic has had an "unprecedented" impact on physical activity levels in England, with 1 ...
Latest News
The first énergie Fitness club has opened in Spain as part of a push for ...
Latest News
A global innovation competition has been launched to find ways to encourage and support more ...
Latest News
Xponential Fitness has acquired Body Fit Training in a deal worth US$44m. The deal takes ...
Latest News
Exercise has been highlighted as a crucial weapon in cancer patients’ battle against the disease. ...
HCM Magazine
Mental health
People who exercise 3-5 times per week show better mental health
HCM Magazine
Everyone’s talking about
In the last issue of HCM, we checked with big box operators in the UK to see how trading has been going since restrictions were lifted. This month we turn our attention to boutiques and urban studios to find out how they’re faring. Kath Hudson reports
HCM Magazine
HCM People
Our competition need to fasten their seatbelts
HCM Magazine
HCM People
Screens display power generated from each piece of equipment, allowing people to compete against each other for kilowatt hours produced
HCM Magazine
Active ageing
David Minton says the healthy movement industry is ten times bigger than the health club sector, and the care industry four times bigger and ask why we’re not rushing to collaborate?
HCM Magazine
Insight
Dr Davina Deniszczyc talks us through the findings of the first Nuffield Healthier Nation Index, which has benchmarked activity levels and attitudes to exercise among the UK population
HCM Magazine
Statistics
How have consumers responded to the end of lockdowns? Cesar Carvalho shares some bounceback numbers with HCM
HCM Magazine
HCM magazine
As the UK government’s social prescribing initiative gains momentum, Kenny Butler calls on the sector to step up and get involved
HCM magazine
Our equipment doesn't consume power but does generate it, recycling human energy
HCM magazine
I’d like to see the gym sector help champion the social prescribing agenda, as a route to getting more people engaged in physical activity
Featured supplier news
Featured supplier news: Power Plate teams up with Myzone for a new exercise experience
Power Plate has teamed up with Myzone to provide its community with new class experiences and the opportunity to offer rewards based on effort, every time they move.
Featured supplier news
Featured supplier news: Will your business last without digital transformation?
During the pandemic, a digital transformation took off faster than anyone could have predicted with meetings in person cancelled and millions working from home.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Company profiles
Company profile: REGUPOL BSW GmbH
REGUPOL is one of the leading suppliers of sports and safety flooring, anti-slip mats for ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
Uniforms
Service Sport: Uniforms
Fitness equipment
Precor: Fitness equipment
Skincare
Sothys: Skincare
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Management software
Premier Software Solutions: Management software
Red Light Therapy
 Red Light Rising: Red Light Therapy
Spa software
SpaBooker: Spa software
Exercise equipment
Power Plate: Exercise equipment
Wearable technology solutions
MyZone: Wearable technology solutions
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates

News

Peloton hits its first big hurdle as the company grapples with growing pains

Shares in Peloton have fallen after the company revealed it was cutting the price of its original Bike to US$1,495
Results for Q4 saw a loss of US$313.2m against profits of US$89.1m last year
Peloton also predicts its expenses will increase during 2022, impacting margins
The company recalled its treadmill recently in the US, following the death of a child

Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.

Fourth-quarter results saw the company reporting losses of US$313.2m against profits of US$89.1m a year ago in spite of revenues having increased 54 per cent to US$936.9m.

Peloton is lowering the price of its original Peloton Bike across all markets to US$1,495 (€1,495, £1,350 GBP) – it's also introducing a longer, 43-month, 0 per cent financing term option for Bike+ and Tread across all regions.

In its financial update to investors, Peloton said: "In the near term, our profitability will be impacted by the price decrease in our original Bike, significant increases in commodity costs and freight rate increases, a sales-mix shift to Tread, investments in marketing to broaden our appeal, accelerated investments in new products and features, investments to scale our member support and logistics operations, and significant investments in systems to support our growth.

"Looking ahead, we expect to return to Adjusted EBITDA profitability for full year 2023.

"Connected Fitness Margin in Q1 will also be significantly impacted by last-mile delivery costs, given the seasonality in our business.

"Peloton’s last-mile logistics is an important aspect of our member experience, but the fixed investments in warehouses, vehicles and people in our delivery network are carried throughout the year.

"Therefore, we will experience fixed-cost inefficiencies during our smaller volume first quarter, but expect significant leverage of these expenses in the remaining quarters of FY 2022."

Following the announcement, shares in Peloton fell by 15 per cent (to US$97), before recovering to around US$107 at the close of markets.

Peloton was one of the big "winners" of the pandemic, as people flocked to connected and digital fitness products and services as health clubs and studios were forced to close their doors.

Sales of Peloton products surged during 2020 and into 2021, more than doubling to US$4bn in the year to 30 June 2021, however, it recalled its treadmills in the US, following the death of a child, resulting in a significant financial and reputational hit.

To read Peloton's letter to investors in full, click here.

Sign up here to get HCM's weekly ezine and every issue of HCM magazine free on digital.
Shares in Peloton have fallen after the company revealed fourth-quarter losses. It also said that tactical changes to the business will hit profits until 2023.
HAF,FIT,IND,PTS,SAM,TEC
2021/THUMB348361_615233_37770.jpg

News

Boutique operator 1Rebel has launched its first 1Rebel Labs Studio at its club in Holborn.
The Local Government Association (LGA) has called on the UK government to invest £875m in
Anthony Hamilton, the father of F1 racing driver Lewis Hamilton, is launching a fitness equipment
The pandemic has had an "unprecedented" impact on physical activity levels in England, with 1
The first énergie Fitness club has opened in Spain as part of a push for
A global innovation competition has been launched to find ways to encourage and support more
FIBO Exhibition
FIBO Exhibition
“At least 40 per cent of all businesses will die in the next 10 years
Xponential Fitness has acquired Body Fit Training in a deal worth US$44m. The deal takes
Exercise has been highlighted as a crucial weapon in cancer patients’ battle against the disease.
The global health and fitness industry is returning to a busy programme of live trade
Matrix and Intelivideo have signed a strategic partnership, which will see Intelivideo's fitness content integrated
Nadine Dorries, the recently appointed secretary of state for digital, culture, media and sport at
Mindbody has announced it's buying ClassPass, the consumer wellness subscription service that enables people to
FreeMotion Fitness
FreeMotion Fitness
As Surge expands its offer with the launch of a third dedicated Electronic Muscle Stimulation
Tanni Grey-Thompson has outlined her vision on how the physical activity sector can play "the
The Global Health & Fitness Alliance (GHFA) has revealed the makeup of its inaugural nine-member
The 40th Annual IHRSA International Convention & Trade Show (IHRSA 2021) begins today in Dallas,
A new study has suggested that strength training can result in people losing around a
Basic-Fit has officially opened its 1,000th club, with the launch of a new site in
Health club operator Life Time Group has become a publicly traded company again, after it
Miha Bodytec GmbH
Miha Bodytec GmbH
People's fitness goals are extremely diverse – ranging from an elite athlete focused on the
Creating workout experiences will be the main theme of this year's Retention Convention, which will
Marg Mayne will stand down as CEO of Mytime Active next year, after more than
Les Mills
Les Mills
1 - 20 of 12,054
HCM Magazine
Mental health
People who exercise 3-5 times per week show better mental health
HCM Magazine
Everyone’s talking about
In the last issue of HCM, we checked with big box operators in the UK to see how trading has been going since restrictions were lifted. This month we turn our attention to boutiques and urban studios to find out how they’re faring. Kath Hudson reports
HCM Magazine
HCM People
Our competition need to fasten their seatbelts
HCM Magazine
HCM People
Screens display power generated from each piece of equipment, allowing people to compete against each other for kilowatt hours produced
HCM Magazine
Active ageing
David Minton says the healthy movement industry is ten times bigger than the health club sector, and the care industry four times bigger and ask why we’re not rushing to collaborate?
HCM Magazine
Insight
Dr Davina Deniszczyc talks us through the findings of the first Nuffield Healthier Nation Index, which has benchmarked activity levels and attitudes to exercise among the UK population
HCM Magazine
Statistics
How have consumers responded to the end of lockdowns? Cesar Carvalho shares some bounceback numbers with HCM
HCM Magazine
HCM magazine
As the UK government’s social prescribing initiative gains momentum, Kenny Butler calls on the sector to step up and get involved
HCM magazine
Our equipment doesn't consume power but does generate it, recycling human energy
HCM magazine
I’d like to see the gym sector help champion the social prescribing agenda, as a route to getting more people engaged in physical activity
HCM magazine
Research firm Qualtrics surveyed 12,157 consumers across 15 countries in seven languages to create the Les Mills 2021 Global Fitness Report, highlighting the ways consumers are choosing to work out as we emerge from the pandemic. Jak Phillips reports
HCM magazine
Focusing on dieting has failed to offset the rising tide of obesity, say researchers from the Universities of Arizona and Virginia. A focus on fitness gives better health outcomes
HCM magazine
In this issue, we’re focusing on sharing insights and thought leadership to highlight opportunities for the development of the sector in terms of both markets and offerings, says Liz Terry, HCM editor
HCM magazine
Fuel the debate about issues and opportunities across the industry. We’d love to hear from you – [email protected]
HCM magazine
HCM People

Danielle Obe

Chair, The Black Swimming Association
Our vision is a future with ethnic diversity in aquatics
HCM magazine
This year’s edition of the IHRSA Global Report which addresses performance from 2020, is a valuable record of the tremendous impact of the COVID-19 pandemic on the sector, creating a benchmark from which to understand the recovery. Kristen Walsh reports for HCM
HCM magazine
Featured supplier news
Featured supplier news: Power Plate teams up with Myzone for a new exercise experience
Power Plate has teamed up with Myzone to provide its community with new class experiences and the opportunity to offer rewards based on effort, every time they move.
Featured supplier news
Featured supplier news: Will your business last without digital transformation?
During the pandemic, a digital transformation took off faster than anyone could have predicted with meetings in person cancelled and millions working from home.
Featured operator news
Featured operator news: Being active helps Parkwood Leisure customers save the NHS £16m
Parkwood Leisure, one of the UK’s leading public leisure facilities operators, helped prevent more than 7,000 cases of stroke, dementia, depression and type 2 diabetes in 2019, saving the NHS £16 million, a new social value report has shown.
Featured operator news
Featured operator news: Everyone Active bolsters Everyone on Demand and enters second year with five new partnerships
Everyone Active has signed a number of new deals which will see the operator strengthen its digital product offering, Everyone on Demand.
Company profiles
Company profile: REGUPOL BSW GmbH
REGUPOL is one of the leading suppliers of sports and safety flooring, anti-slip mats for ...
Company profiles
Company profile: TRIB3 International Ltd
First established in Sheffield in January 2016 TRIB3 is a bootcamp boutique studio designed to ...
Catalogue Gallery
Click on a catalogue to view it online
Directory
Architects/designers
Zynk Design Consultants: Architects/designers
Uniforms
Service Sport: Uniforms
Fitness equipment
Precor: Fitness equipment
Skincare
Sothys: Skincare
Lockers/interior design
Crown Sports Lockers: Lockers/interior design
Management software
Premier Software Solutions: Management software
Red Light Therapy
 Red Light Rising: Red Light Therapy
Spa software
SpaBooker: Spa software
Exercise equipment
Power Plate: Exercise equipment
Wearable technology solutions
MyZone: Wearable technology solutions
Property & Tenders
Welwyn Garden City
Welwyn Hatfield Borough Council
Property & Tenders
Newport, Shropshire
Lilleshall Sports Academy
Property & Tenders
Diary dates
01-03 Feb 2022
Coventry Building Society Arena, Coventry, United Kingdom
Diary dates
07-10 Apr 2022
Exhibition Centre , Cologne, Germany
Diary dates
15-16 Jun 2022
ExCeL London, London, United Kingdom
Diary dates
01-07 Dec 2022
tbc, Dunedin, New Zealand
Diary dates
Search news, features & products:
Find a supplier:
Technogym
Technogym