- Peloton cut its 2022 apparel unit sales targets by a quarter, CNBC reported.
- It cut its sales forecast from $200 million to $150 million, according to an internal presentation seen by CNBC.
- Clothing is a small part of Peloton’s business, but sales have grown rapidly during the pandemic.
Peloton cut its 2022 apparel unit sales forecast by a quarter, CNBC reported, citing internal company documents.
The connected fitness company originally expected its apparel unit to bring in more than $200 million in revenue in the year through June 2022, CNBC reported, citing an internal presentation. But the company has now reduced the figure to around $150 million, according to the presentation, which it attributed to several factors, including the supply chain crisisby CNBC.
A Peloton spokesperson declined to comment on CNBC. The company did not immediately respond to Insider’s request for comment, which was made outside of normal working hours.
The company has gone through a difficult 12 months. Sales of its machines soared during the pandemic as gym goers worked out from home, but reports in January surfaced of pauses in production of its bikes and treadmills due to a slowdown in demand, triggering liquidation of company shares. CEO John Foley denied the reports.
The company has also previously been hit by customer complaints about long delivery waits and poor customer service, a recall of its Tread+ after a child died and injured others, and the depiction of two characters from television suffering from heart attacks while using his bicycle.
Although apparel is only a small part of Peloton’s overall business, sales for the unit, which is led by Jill Foley, wife of the CEO, have grown rapidly as the company’s home fitness push pandemic has boosted the demand for sportswear.
The unit’s revenue more than doubled year-over-year to $107 million in the year to June 2021, selling nearly 2 million pieces of clothing, CNBC reported, citing the presentation. Peloton said in the presentation that it did not have enough supply to meet demand, according to the report.
Peloton reported total revenues of just over $4 billion in the year through June 2021, which means apparel sales were about 2.5% of total revenue, based on numbers included in the presentation seen by CNBC.
CNBC said it was unclear if the numbers cited in the presentation were audited.
Peloton had stepped up efforts to grow its apparel business, launching its own apparel brand in September after selling apparel through partnerships with Adidas, Lululemon and Nike.