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.
Shares were down nearly 6% in afternoon trading.
