Peloton UK’s losses have widened due to “slowing sales” and surging restructuring costs, according to the company’s latest financial results. The retailer posted an operating loss of £210.4m in the year to 20 June 2022, compared to a £81.4m loss the year before.

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Sales dropped 13% to £127.8m, which its bosses said was “due to slowing sales reflecting the impact of the Covid-19 pandemic on our hardware sales”. Administrative costs surged 47% due to market expansion and the “gross margin on hardware deteriorated”. The company also incurred £37m in restructuring costs following its decision to stop manufacturing its own bikes to cut down on expenditure.

The results reflect a slowdown from the Covid “winner” after demand for its bikes, treadmills and online fitness classes tripled during the first year of the pandemic. A Peloton spokesperson said: “International markets continue to be a focus and area of growth for Peloton. We are confident that these changes will enable us to drive long-term growth and profitability.”


Sources: https://www.retailgazette.co.uk/blog/2023/06/peloton-uk-losses-widen/