As has been widely expected, Peloton Interactive (PTON +5.9%) slashed the sales projections for its apparel business amid supply chain challenges and waning pandemic period demand, according to corporate documents spotted by CNBC.
The company now forecast that its apparel division will bring in around $150M for its fiscal year after an early projection called for more than $200 million in annual revenue.
Analysts have been warning for several months that Peloton (NASDAQ:PTON) may have been shooting too high with an expectation it could make a big splash in the apparel industry. The business is run by CEO John Foley's wife, which some activist investors think complicates the issue.
The apparel business only account for a small fraction of PTON's total revenue haul. Shares of Peloton Interactive (PTON) rose 5.66% in afternoon trading as they continue to a mild recovery from the 2022 low of $22.81.