Peloton has significantly reduced its 2022 sales projections for its apparel business, according to internal documents obtained by CNBC.
CNBC cited a presentation dated November 2021 that showed apparel revenue more than doubled to over $100 million from 2020 to 2021. It also showed that Peloton initially expected its apparel division to double sales again in 2022 to more than $200 million but is now expecting to see closer to $150 million in apparel sales.
According to the presentation, multiple “macro factors,” including supply chain constraints, were cited for the downward adjustment. The re-accessed expectations also reflect the lower overall sales expectations for Peloton as sales of its core connected fitness products have slowed with fitness enthusiasts heading back to gyms.
One slide of the presentation reads, “As people leave their homes, some share of consumer wallet is moving toward ‘going-out’ apparel as opposed to ‘stay-at-home’ athleisure. As Peloton member rate of growth softens, organic apparel may move in lockstep.”
Photo courtesy Peloton
