Bike price cut, rising costs to hit Peloton's profitability

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(Reuters) -Peloton Interactive Inc said on Thursday its near-term profitability would suffer due to a decision to slash the price of its exercise bike and higher commodity and marketing costs.
The fitness equipment maker also introduced monthly financing options for its Bike+ and Tread products across all regions, as it looks to prevent a slowdown in its business after last year's home fitness boom.
The moves, aimed at making its bikes more affordable, will weigh on its performance in the first quarter. The company's revenue forecast of $800 million was below analysts' average estimate of $1.01 billion, according to Refinitiv data.
Its shares fell as much as 15% after the bell but pared losses to trade down 6%.
Peloton's original bike will now cost $1,495, compared with $1,895 earlier, and the company will also ...


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