// Peloton UK’s losses have widened due to “slowing sales” and surging restructuring costs
// The retailer posted an operating loss of £210.4m in the year to 30 June 2022
The UK arm of Peloton has posted widening losses after sales dropped off following the end of the lockdown.
The exercise bike specialist, which rose to popularity during the pandemic, reported an operating loss of £210.4m in the year to 30 June 2022, compared to a £81.4m loss the year before.
Sales dropped 13% to £127.8m, which its bosses said was “due to slowing sales reflecting the impact of the Covid-19 pandemic on our hardware sales”.
Part of Peloton’s widening losses is due to a 47% surge in administrative costs related to its market expansion and as the “gross margin on hardware deteriorated”.
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The group swallowed £37m in restructuring costs following its decision to stop manufacturing its own bikes to cut down on expenditure.
It also racked up costs by opening its Covent Garden fitness studio earlier this year, which it said had increased the expense of goods sold by 17%.
The latest results reflect a slowdown from the Covid “winner” after demand for its bikes, treadmills and online fitness classes tripled during the first year of the pandemic.
A Peloton spokesperson said: “International markets continue to be a focus and area of growth for Peloton.
“Full-year 2022 was a transformational year for Peloton as we began to restructure our operations, reduced headcount, and outsourced manufacturing of connected fitness units.”
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