Get All Access for $5/mo

People Are Going Back to Gyms, Peloton Shares Plummet 33% The Peloton craze may be waning, marking a shift in consumer behavior.

By Chloe Arrojado

Bloomberg | Getty Images

The pandemic-fueled craze of the Peloton bike may be at its end after a letter to shareholders revealed a challenging first quarter.

On Thursday, Peloton disappointed investors by reporting a 17% year-over-year decline within its connected fitness products, which include the company's treadmill and bike. Overall revenue only grew 6%, which was still below analysts' expectations.

Related: 8 Reasons why Popularity of Gyms is Increasing Exponentially

The company lowered its forecast for 2022, as it predicts "a more pronounced tapering of demand related to the ongoing opening of the economy." Peloton shares dropped by as much as 33% after the report.

"As discussed last quarter, we anticipated fiscal 2022 would be a very challenging year to forecast, given unusual year-ago comparisons, demand uncertainty amidst re-opening economies, and widely-reported supply chain constraints and commodity cost pressures," Peloton wrote in its report. "Although we are pleased to have delivered first quarter results that modestly exceeded our guidance, a softer than anticipated start to Q2 and challenged visibility into our near-term operating performance is leading us to recalibrate our fiscal year outlook."

Part of the reopening impact includes the return to gyms. Membership gym Planet Fitness's stock rose 12% Thursday after reporting its earnings report, with its membership levels hitting 15 million. For context, the gym's pre-pandemic peak hit 15.5 million members.

Related: 5 Insights Entrepreneurs Who Go to the Gym Gain About Themselves

Chloe Arrojado

Entrepreneur Staff

Editorial Assistant

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

Use This Framework to Successfully Integrate AI Into Your Business Operations

Here's how to ensure both innovation and compliance when using AI in your organization.

Leadership

Why Your AI Strategy Will Fail Without the Right Talent in Place

Using fractional AI experts through specialized platforms allows companies to access top talent cost-effectively, drive innovation and scale agile strategies for growth.

Business News

Here's What the CPI Report Means for Your Wallet, According to JPMorgan and EY Experts

Most experts agree that there will be another rate cut next week.