Peloton Shares Plunge on Weak Forecast and Expensive Recall
- Product recall ‘substantially exceeded’ initial projections
- Company plans to resume sales of Tread+ for holidays
Exercise equipment and apparel for sale at the Peloton showroom in Dedham, Massachusetts, US,
Photographer: Adam Glanzman/BloombergThis article is for subscribers only.
Peloton Interactive Inc. shares fell the most in more than six months after the fitness company gave a weak revenue forecast for the current quarter and said costs for a product recall were significantly more expensive than it anticipated.
Revenue will be $580 million to $600 million in the fiscal first quarter, Peloton said in a statement Wednesday. That compared with an average analyst estimate of $647.8 million, according to data compiled by Bloomberg.