Peloton beats sales estimates on home workout craze

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The results come a day after the company issued a recall of its treadmills following reports of multiple injuries and the death of one child in an accident.

Shares of the company were down 4% at $80.40 in extended trade, as investors awaited details on any potential financial impact after Peloton (NASDAQ:PTON) said it would announce revised full-year guidance on its post-earnings call.

CEO John Foley said Peloton would immediately stop sales of its Tread+ and Tread treadmills in all markets and postpone the U.S. launch of Tread, which was previously scheduled for May 27.

Peloton also said it was working with the U.S. Consumer Product Safety Commission (CPSC) to build an extra layer of safety features for Tread+, including a digital pass code to protect against unauthorized use.

It will also be working to develop more physical hardware to enhance the safety of Tread+, the company said.

Peloton emerged as a pandemic winner as home workouts became all the rage during prolonged lockdowns, but investors are now closely watching how demand will holdup as vaccine rollouts in key markets allow fitness centres to gradually reopen and enthusiasts to train outside.

Revenue at Connected Fitness, which includes interactive videos that stream live classes, jumped 139.9% to $1.02 billion in the quarter, while its Connected Fitness subscriptions increased 135% to about 2.08 million.

The interactive fitness equipment maker said total quarterly revenue rose 141% to $1.26 billion, beating analysts’ estimates of $1.11 billion, according to Refinitiv data.

Net loss attributable to Class A and Class B shareholders narrowed to $8.6 million, or 3 cents per share, in the third quarter, compared with a loss of $55.6 million, or 20 cents per share, a year earlier.

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