Former Peloton (PTON) CEO John Foley is getting candid about the fitness equipment company’s rapid decline after the Covid pandemic.
In a new interview with the New York Post, Foley, who was once a billionaire, revealed that he lost all of his money after exiting Peloton as CEO in 2022.
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“You know, at one point I had a lot of money on paper. Not actually (in the bank), unfortunately,” said Foley. “I’ve lost all my money. I’ve had to sell almost everything in my life.”
Foley was once worth around $1.9 billion as the company’s workout equipment became popular during the pandemic in 2020 due to gym closures and lockdowns, which forced people to stay in their houses. By late 2022, Foley’s net worth declined by 87% after stepping down as CEO in February that year, according to Bloomberg.
As his money declined, Foley claims that he had to downsize twice, which included selling his $55 million East Hampton waterfront home.
John Foley, co-founder and chief executive officer of Peloton Interactive Inc., stands for a photograph during the company’s initial public offering (IPO) in front of the Nasdaq MarketSite in New York, U.S., on Thursday, Sept. 26, 2019.
“I’m working hard so that I can try to make money again … because I don’t have much left,” he said. “And so I’m hungry and humble.”
Peloton’s value decreased from $50 billion to about $1.8 billion within a span of roughly four years as the pandemic lockdowns lifted, and people returned to working out in gyms.
He also claimed that the “Sex and the City” reboot, “And Just Like That…,” was among the major factors that contributed to Peloton’s downfall. The show premiered on HBO Max in 2021, and in the first episode, Mr. Big, a beloved main character, died from a heart attack after doing a strenuous workout on his Peloton bike.
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“We were coming out of Covid. The stock was getting crushed. There was a leaker (who told the press of pending layoffs). We had an activist in the stock,” said Foley. “And then the Mr. Big thing happens … it was brutal.”
Peloton struggles to boost its sales
Peloton is still on a shaky road to recovery amid a decline in sales after the pandemic. In its fourth-quarter earnings report for 2024, Peloton revealed that its membership numbers shrunk by 2%, compared to the same time period last year, and its fitness products revenue decreased by 4%.
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Despite those declines, Peloton managed to increase its total revenue by roughly $1 million during the quarter. Its gross profit also increased by a whopping 55% year-over-year.
Peloton, however, predicts that subscribers using its hardware will drop by 3% year-over-year during the current quarter, and its paid app users will also decline by 26%. The company claims that the “uncertain macroeconomic environment,” along with other factors, will be one of the main culprits behind dwindling sales.
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