Peloton shares plunged over 9% as chairman exits in shake-up. Peloton co-founder John Foley and other senior leaders are leaving the company in a management shake-up as the maker of connected exercise equipment races to turn itself around.
Peloton has struggled with deepening losses this year after a pandemic-fueled spike in demand for its at-home workouts left the company with a glut of unsold bicycles when consumers returned to gyms and outdoor activities. The company’s shares have plunged more than 90% over the past year.
Mr. Foley, who led the company for most of its 10-year existence,stepped down as CEOin February but remained executive chairman of the board. He resigned on Monday, the company said, and will be succeeded as board chair byKaren Boone, a former executive at Restoration Hardware and a Peloton board member since 2019.
The shake-up, announced by Chief Executive Barry McCarthy, comes weeks after Peloton reported a $1.2 billion quarterly loss and a nearly 30% drop in revenue. Mr. McCarthywarned investors in Augustthat the business would likely spend more cash than it brings in for several more months.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments