Peloton shares fall after it posts wider-than-expected loss, falling sales due to Bike recall, seasonality

Peloton’s shares fell by about 7.4% after it posted a wider-than-expected adjusted loss of $0.26 per share in its fiscal fourth quarter and reported lower-than-expected sales of $757 million. The drop in sales was largely attributed to the recall of its Tread+ product in April, as well as lower-than-expected sales due to seasonality and supply chain issues. The company also reported a net loss of $49.5 million for the period. Peloton’s executives remain confident in the company’s long-term outlook, emphasizing its growth prospects in the digital segment and growth in international revenue.