Peloton Interactive Inc.
will swap its top financial executive about four months after it appoints a new one, a move that comes as the fitness equipment maker is adjusting for ongoing losses.
The New York-based home exercise equipment company on Monday said Liz Coddington will serve as chief financial officer, effective June 13. Peloton said its current chief financial officer they, Jill Woodworth, have decided to leave after more than four years with the company.
Peloton said Ms. Woodworth will remain with the firm as an interim consultant to help prepare financial results for the 2022 financial year.
Coddington was most recently the vice president of finance for Amazon Web Services, an Amazon.com Inc.
subsidiary that provides an on-demand cloud computing platform. Prior to that, she held the roles of CFO and CFO at companies including retailer Walmart Inc.
and Netflix streaming business Inc.
Ms. Coddington joined Peloton as the company was dealing with declining demand from consumers after facing issues around its ability to fulfill orders, which had skyrocketed in the early stages of the pandemic. The surge in demand for Peloton bikes prompted the company to break ground on a million-square-foot factory in Wood County, Ohio last year.
Peloton is now looking to sell the plant they will never use. The company also slashed the price of its equipment, forecast slower growth, and had to borrow $750 million to finance its operations.
Peloton in May reported its biggest quarterly loss since the company went public in 2019, reporting a net loss of $757.1 million for the quarter ended March 31, compared with a net loss of $757.1 million for the quarter ended March 31. loss of $8.6 million in the same period last year.
In February, Peloton replaced CEO John Foley with Barry McCarthy, who was previously the financial head of digital music service Spotify Technology. SA
and Netflix. The company also cut 2,800 jobs amid falling demand for exercise equipment. Mr. Foley is associated with the company’s growth phase following the public offering and a revenue spike early in the pandemic.
Rohit Kulkarni, managing director at equity research and trading firm MKM Partners LLC, said the change to the chief financial officer position makes sense given the continued restructuring under Mr. McCarthy.
“Since the new CEO puts his stamp on the structure of the organization and aligns it with where he wants the company to grow, the changes are not entirely surprising,” he said.
With Peloton’s fiscal year ending June 30, Ms Coddington will very soon be “under the microscope by larger investors”, as it is expected that the company will release its fiscal year guidance. right after she joined, Mr. Kulkarni said. “It will be a challenging task to deliver that new guidance.”
Write letter for Jennifer Williams-Alvarez at firstname.lastname@example.org and Mark Maurer at Mark.Maurer@wsj.com
Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
https://www.wsj.com/articles/peloton-brings-in-amazon-netflix-veteran-as-cfo-11654551517?mod=pls_whats_news_us_business_f Peloton Swaps Out Finance Chief as It Navigates Persistent Losses