Peloton Hopes To Begin Selling Treadmills Again By July
MIAMI (CBSMiami) - Peloton says it will likely be months before it can sell its treadmills again.
Earlier this week, the company recalled both of its models to address safety concerns.
On Thursday, Peloton CEO John Foley said he hopes that at least one of them will be back on the market by July.
Peloton estimates the recall will lead to about $154 million in lost sales.
Last month, the U.S. Consumer Product Safety Commission warned people with children and pets to immediately stop using the Peloton Tread+ treadmill after a 6-year-old child was pulled under the rear of the treadmill and died. Injuries to the other children, who were also pulled under the Tread+, included broken bones and cuts.
The safety commission, which is still studying the Peloton Tread+ treadmill, said it appears that its design, including the band and its height off the floor, made it more dangerous than other brands.
Peloton said the $165 million hit to its revenue this quarter includes $105 million in missed sales of the treadmills, and $50 million that will go to paying full refunds to those who want to return the recalled treadmills, which cost $4,200 each.
The company estimates about 10% of the recalled treadmills will be returned between now and the end of June, but said others may be returned later since people have until November of next year to get a full refund.
Peloton, best known for its stationary bikes, has seen its sales explode during the pandemic as virus-wary people have avoided gyms and worked out at home.
On Thursday, the company said its sales soared 141% to $1.26 billion in the quarter that ended March 31, compared to the same period a year ago. It posted a loss of $8.6 million in the quarter, or 3 cents per share, which was better than the loss of 11 cents per share that Wall Street analysts expected, according to Zacks Investment Research.
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