The company says the $40 million cost of a seat recall announced in May exceeded Peloton's initial expectations.
Peloton Interactive stock was sinking Wednesday after the at-home fitness company saw a drop in subscribers and provided a disappointing outlook for its fiscal first quarter.
“The slowdown exceeded our expectations through May and through the first three weeks of June as consumer spending shifted toward travel and experiences,” Chief Executive Barry McCarthy said in the letter. The company reported a fiscal fourth-quarter loss of 68 cents a share on revenue of $642.1 million. Analysts surveyed by FactSet were expecting the maker of exercise equipment to report a fourth-quarter loss of 40 cents a share on revenue of $641 million.
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