We don’t feel right about spoilers, so best not to mention how connected fitness firm Peloton figures into HBO Max’s new “Sex and the City” reboot called “And Just Like That…”
Suffice to say the plotline we’re not disclosing here makes for questionable PR optics combined with bad market timing — ironically reflecting the performance of a connected fitness cycle that helped thousands burn off the “COVID-19 pounds” packed on during 2020 lockdowns.
CNBC reported on Friday (Dec. 10) that “Peloton received a ratings downgrade on Friday that stoked ongoing concerns about weakening demand for its products. Credit Suisse Analyst Kaumil Gajrawala slashed the company’s price target by more than half, from $112.00 to $50, as he changed the stock’s rating from outperform to neutral.”
It seems the streaming fitness firm just can’t get a rest day from the bad news brought on by a recovery that’s sending workouts back to commercial gyms and out-of-home settings.
Events moved into high gear after a Peloton blog post on Aug. 26 said, “Starting today, the original Peloton Bike will be available in the U.S., U.K., Canada, Germany and Australia for $1495 USD /£1350 GBP/$1895 CAD / €1495 EUR, and $2295 AUD respectively (Peloton’s All-Access Membership is separate).”
The blog also mentioned that “Peloton’s new financing options help lower the monthly payments for qualified customers,” which many saw as price sensitivity, not promotion.
This wasn’t taken as financial fitness, compounding other problems Peloton faces.
The day after the price cut, news site The Verge reported that “the Tread Plus recall, as well as the separate recall that delayed the Tread’s launch, are cited by CNBC and Peloton as part of the reason for the company’s financial woes last quarter.”
See also: Are Consumers Really Giving up on Home Fitness?
While Peloton pedals off into an uncertain future, the gym business is back after a tough go.
PYMNTS reported that “Planet Fitness — which struggled mightily during the pandemic, as many gyms did — barreled past earnings expectations on Thursday (Nov. 4), with executives noting that membership levels have reached 97% of the company’s all-time peak. Member count rose for the third quarter in a row to 15 million people,” rising 200,000 in one quarter.
Planet Fitness CEO Chris Rondeau said Gen Z is currently leading other demographics in gym memberships. Though Gen Zers — the oldest being around 25 years old — are not the target market for expensive Peloton gear and subscriptions, it lends context to the brand’s broader struggles.
See also: Peloton’s Fall, Planet Fitness’ Rise Suggest Connected Fitness Boom Is Over
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