Aug 23 Reuters Peloton Interactive on Wednesday forecast firstquarter revenue below Wall Street estimates as a shift in consumer spending toward travel and experiences hurt demand for its exercise equipment, sending its shares 14 down before the bell.

The NewYork based company that benefited from a surge in demand for its connected bikes during the pandemic has seen a sharp revision in demand post pandemic as people also return to gyms.

Consumers also cut back on discretionary spending amid a series of interest hikes over the past year stoking fears of an economic downturn.

Peloton39;s revenue in the fourth quarter fell to 642.1 million from 678.7 million a year earlier.

Revenue from connected fitness products fell to 220.4 million from 295.6 million, while subscription revenue were up to 421.7 million from 383.1 million a year earlier.

The company now expects firstquarter revenue between 580 million and 600 million, below analysts39; average estimate of 655.9 million, according to Refinitiv data.

Reporting by Kannaki Deka in Bengaluru; Editing by Shinjini Ganguli

Source Reuters