Peloton Interactive Inc (NASDAQ:PTON) is trading lower Thursday following a CNBC report suggesting the company is temporarily halting production of its connected fitness products as a result of waning consumer demand.
CNBC attributes the information to "internal documents obtained by CNBC." The move comes as Peloton reportedly looks to control its costs.
Peloton plans to pause production of its Bike product for two months, beginning in February. The company previously halted production of its more expensive Bike+ product in December.
Peloton also plans to halt the manufacturing of its Peloton Tread treadmill for six weeks and doesn't expect to manufacture any Tread+ machines in 2022. Peloton previously halted Tread+ production as well, following a safety recall last year.
"The company said in a confidential presentation dated Jan. 10 that demand for its connected fitness equipment has faced a 'significant reduction' around the world due to shoppers’ price sensitivity and amplified competitor activity," according to the report.
Peloton operates an interactive fitness platform in two reportable segments: connected fitness products and subscriptions.
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PTON Price Action: Peloton has traded as high as $166.57 over a 52-week period. It's making new 52-week lows Thursday.
The stock was down 24.6% at $24.02 at time of publication.
Photo: courtesy of Peloton.
