By Abhijith Ganapavaram and Kannaki Deka
(Reuters) -Peloton Interactive Inc’s effort to cut costs in the latest quarter may have helped the fitness equipment maker burn less cash, but that only means one less hurdle on its road to turnaround, analysts say.
The company, once a pandemic darling, is seeing a slump in demand from fitness-conscious customers as they resume normal routines after being kept indoors during the health crisis.
“Peloton is making progress reducing costs, its cash burn, and its inventory position. However, demand remains a problem, with few new subscribers expected this quarter and in the calendar first half of 2023,” Telsey Advisory Group analysts said in a note.
For the second quarter, Peloton is expected to report a smaller cash burn of $102 million, compared with $546.7 million a year earlier, according to Refinitiv data.
The company has set a target of achieving breakeven cash flow in the…
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