Home > Industry > Peloton Says Tread Recall Will Reduce Quarterly Sales By $212 Million

Peloton Says Tread Recall Will Reduce Quarterly Sales By $212 Million

After the Peloton Tread+ was linked to the death of a child, as well as over 80 separate injuries, Peloton have reduced its projected quarterly revenue for April-June to AU$1.176 million, explaining that recalls and delayed product releases would reduce their sales during the current quarter by AU$212 million.

Surprisingly, shares gained 5 per cent after the announcement, as shareholders were expecting a far worse result.

Chief Executive Officer John Foley said the financial impact would be “short term” and that the company is working on a software update that requires a passcode to use the Tread+. He also said that Peloton expect roughly 10 per cent of Tread+ users to seek a refund, and that shipping times are back to pre-pandemic levels.

“While progress has been made, additional work remains to reduce delivery times across the remainder of our product portfolio and regions,” Foley said..

You may also like
Peloton To Open Its First US Factory
Peloton Explains Its Plans For Australia
Peloton Treadmill Recalled Questions Over OZ Launch
Peloton’s Stocks Plummet After Safety Concerns Increase
New OZ Bound Peloton Product Deemed ‘Dangerous’ By US Regulator