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Peloton said it expected the voluntary withdrawal of up to 125.00 treadmills to cost $ 165 million as it stops receiving orders, cancels shipments, issues full refunds and waives three months of subscription fees to anyone who maintains their machines.
The fitness equipment group he remembered the treadmills Wednesday after reports of injuries and one death.
Executive Chairman John Foley, who was attacked for initially rejecting regulators’ warnings about the treadmill, apologized for previous inaction and said he would prefer to take “short-term pain” to prioritize security and investment. future in the brand.
For anyone who maintains the machines, a “in the next few days” software update will lock the tape drive belt when not in use to prevent accidents in which pets and children have been dragged under the machine.
The expected success for the earnings came when Peloton reported third-quarter tax revenue of $ 1.26 billion over the three months to the end of March, surpassing the $ 1.1 billion forecast for a gain of $ 141 million. % with respect to the previous year.
The pioneer of connected fitness, one of the larger beneficiaries of orders to stay at home from the pandemic, as gyms around the world were forced to close, with revenues projected for the June quarter of $ 915 million, compared to forecasts of $ 1.166 billion dollars, according to estimates compiled by Visible Alpha.
For the full year of Platoon, which ended in June, adjusted earnings before interest, taxes, depreciation and amortization were expected to be $ 240 million lower. That biggest hit reflected the loss of treadmill sales, as well as an additional $ 15 million in accelerated shipping costs from the group. fought to meet demand for their stationary bikes.
The forecasts were released during a conference call with analysts and some investors feared worse. Earlier, after posting its third-quarter fiscal results, Peloton’s shares fell more than 4%. During the earnings call, shares rose to 5%.
Treadmill customers have until November 2022 to return their machine for a full refund.
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