Peloton Interactive Inc. on Thursday lowered by 20% the price of its original stationary bike, a move that comes as the company expects more muted growth in the coming year.
The lowest-cost Peloton Bike will sell for $1,495, down from $1,895. The higher priced Bike+ still goes for $2,495. The company sent out marketing emails minutes after disclosing the change along with its financial results.
The company has enjoyed a boom in demand during the Covid-19 pandemic as many gyms were temporarily closed. But on Thursday it predicted slower growth in demand for equipment and subscriptions.
After reporting that revenue rose 54% to $937 million in the June-ended quarter, the company forecast sales of $800 million for the September quarter.
In a letter to investors, executives said they were trying to add as many customers to its subscription workout classes as possible, even though the price cut, coupled with higher shipping costs, would depress near-term profits.
