Peloton unveils treadmill safety fixes as recall hits sales forecast
Peloton Interactive Inc (PTON.O) on Thursday estimated an about $165 million hit to current-quarter revenue from a recall of its treadmills as the company laid out steps to improve the safety of the equipment.
3 minute readA Peloton logo is seen on an exercise bike after the ringing of the opening bell for the company's IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019. REUTERS/Shannon Stapleton/File PhotoPeloton Interactive Inc
(PTON.O)on Thursday estimated an about $165 million hit to current-quarter revenue from a recall of its treadmills as the company laid out steps to improve the safety of the equipment.Shares of the interactive fitness equipment maker reversed course to be up 5.9% at $88.73 in extended trading. They tumbled about 15% on Wednesday after the company announced the recall following reports of multiple injuries and the death of a child in an accident.
read moreOn a post-earnings call after the company beat estimates on demand for its flagship exercise bikes from stuck-at-home fitness enthusiasts, Chief Executive Officer John Foley said Peloton would postpone the U.S. launch of Tread that was scheduled for May 27. headtopics.com
The company is working with the U.S. Consumer Product Safety Commission (CPSC) to build an extra layer of safety features for the Tread+, including a digital pass code to protect against unauthorized use.Peloton, which has stopped sales of its treadmills in all markets, also flagged some issues with the new Tread such as reports of screws loosening and causing the touchscreen to detach from the unit. Tread sales are expected to begin after the CPSC completes its review, the company said.
The company will offer a full refund on returns of its Tread+ and Tread treadmills and waive monthly all-access subscriptions for both for three months.Peloton said it expects fourth-quarter sales of about $915 million, compared with estimates of $1.17 billion, while annual revenue forecast of $4 billion came in slightly below estimates and prior company outlook.
The recalls, along with the loss of revenue from subscription waivers, will impact fourth-quarter adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by about $16 million, the company said.RIDING HIGHMeanwhile, revenue more than doubled to $1.26 billion in the third quarter, beating estimates of $1.11 billion, according to Refinitiv data.
Peloton emerged as a pandemic winner as home workouts become all the rage during prolonged lockdowns, with investors now focused on how demand will holdup as vaccine rollouts in key markets allow fitness centers to reopen and enthusiasts to train outside. headtopics.com
Subscriptions at Connected Fitness, which includes interactive videos that stream live classes, more than doubled to about 2.08 million in the quarter.Net loss attributable to Class A and Class B shareholders narrowed to $8.6 million, or 3 cents per share, from $55.6 million, or 20 cents per share, a year earlier.Read more: Reuters Top News »
Selena Gomez Gets Candid About Her Best (and Worst) Fashion Moments
Did you know she helped design some of her red carpet looks?
I never got one because I don't have a million dollar view like in the commercials... I'd just be looking a my 80 year neighbor in her tube top smoking cigars
Peloton Announces Voluntary Recall of Tread and Tread+ Machines Over Safety ConcernsPeloton is recalling its Treadmill+ and Treadmill machines after safety concerns and 72 reported accidents. The company is offering full refunds.
Peloton reverses course, recalling all treadmills after safety concerns and one death'Peloton made a mistake in our initial response to the Consumer Product Safety Commission’s request that we recall the Tread+. For that, I apologize,' Peloton's CEO said. Last month, the Consumer Product Safety Commission. issued an 'urgent warning' for parents to stop using the Peloton Tread+, following 39 incidents where small children were injured, including one that resulted in a death. Maybe they should recall all of their annoying ass commercials while they are at it
Peloton reverses course, recalling all treadmills after safety concerns and one deathPeloton shares closed down nearly 15 percent on Wednesday, shaving $4 billion off the company's market value in just one day. Seems like almost any engineer in the world could figure out a way to make this more safe, I could. A good one could even still preserve whatever deliberate 'iconic design' they have going on, doing so. Your new name shall be 'Mudd.'
Peloton recalls Tread, Tread+ treadmills after reports of injuries, deathJUST IN: Peloton voluntary recalls Tread, Tread+ treadmills after reports of injuries and a death, the U.S. Consumer Product Safety Commission says. Get breaking news delivered to your mobile as it happens. Download this free app for latest breaking news. He isn't bad at all. What are customers supposed to do? Lug it in their cars to a nearby service repair shop?
Peloton recalls all treadmills after a child's death and 70 injuriesPeloton is recalling its Tread+ and Tread treadmills. The company said it was wrong to fight the Consumer Product Safety Commission’s request that it do so. One child's death and 70 other injuries have been tied to the treadmills, the CPSC says. Goodbye Peloton The prophecy has been fulfilled. Typical American trash product