Peloton Shares Plunged over 9% as Chairman Exits in Shake-Up
Tiger Newspress2022-09-13
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.
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