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Peloton’s Sprain Turns Into a Tear

Slimming down in three months is quite an accomplishment in fitness. Unless you’re Peloton , that is.

The connected fitness pioneer used its disappointing quarterly report late Thursday to slash its forecast for the full fiscal year ending next June. Peloton now sees full-year revenue coming in between $4.4 billion and $4.8 billion—$1 billion less at the low end than what the company projected just three months ago. The new projection suggests Peloton sees uncertain demand extending beyond the crucial holiday selling season; its December quarter forecast was only about $340 million shy of Wall Street’s forecasts. Peloton shares promptly slid 28% following the report.

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