Layoffs. Losses. Plunging share worth. These pandemic winners at the moment are struggling

Pandemic-era bike boom goes bust

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With people unable (or unwilling) to go to the gym, consumers rushed to buy its exercise equipment and, more importantly, sign up for its online classes. Peloton posted its first quarterly profits in calendar year 2020 as revenue jumped 139% and the stock soared 434%.

The boost was short-lived. As gyms reopened and class subscriptions and equipment sales plunged, so did the company’s outlook.

Thursday, after posting a worse-than-expected fiscal fourth quarter loss, Peloton CEO Barry McCarthy wrote in a letter to investors that “naysayers will look at our Q4 financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses. They will say these threaten the viability of the business.”

McCarthy, however, sees great things ahead for the company despite its woes, claiming that Peloton has made significant progress in its turnaround efforts and stemming its rate of burning through cash.

Investors don’t share his faith. Shares have lost more…

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