Peloton Says Recall Will Reduce Revenue by $165 Million
- Company stopped sales of Tread and Tread+ products this week
- Third-quarter sales more than double on digital subscriptions
This article is for subscribers only.
Peloton Interactive Inc. projected revenue of $915 million in the current quarter, saying the recall of its treadmills would reduce sales by about $165 million. Shares gained about 5% in extended trading after investors had prepared for a larger blow.
Chief Executive Officer John Foley said the financial impact would be “short term” from the halt to sales and recall of the Tread+ and Tread products. Peloton had planned May 27 for an expanded U.S. rollout of its less-expensive Tread, which has only about 1,050 models on the market, but Foley said Thursday the widespread launch will be delayed while safety improvements are put in place.