Peloton headwinds stiffen as people break pandemic routines

Peloton’s uphill ride to get more sales is getting rougher as more people return to gyms and other prepandemic exercise routines and embrace cheaper options.

The maker of high-end exercise bikes and treadmills, once highflying in the early days of the pandemic, on Tuesday reported mounting losses and slowing sale. It also offered a bleak sales outlook for the current quarter and said it had signed a commitment to borrow hundreds of millions of dollars, raising questions for some investors about the chances of a turnaround.

“Peloton has a lot of work to do to convince investors that the business model still works,” said Neil Saunders, managing director of Globaldata Retail. “It’s coming off a high. People were at home and wanted to stay fit. But now people are starting to go back to the gyms. They want the social aspect.”