Fly Intel: What to watch in Peloton's earnings report
Peloton (PTON) is scheduled to report results of its third fiscal quarter after the market close on Thursday, May 6, with a conference call scheduled for 5:00 pm EDT. What to watch:
1. TREAD RECALLS: On Wednesday, Peloton two separate recalls related to its treadmill products. The U.S. Consumer Product Safety Commission and Peloton announced two separate voluntary recalls of Peloton's Tread+ and Tread treadmills. Consumers who have purchased either treadmill should immediately stop using it and contact Peloton for a full refund or other qualified remedy as described in the press releases below, the agency said in a statement. Peloton has also stopped sale and distribution of the Tread+ and continues to work on additional hardware modifications. In the United States, the Tread was only sold as part of a limited invitation-only release from about November 2020 to about March 2021 and the company is currently working on a repair to be offered to Tread owners in the coming weeks.
After announcing the recall, Peloton CEO John Foley said in a statement: "The decision to recall both products was the right thing to do for Peloton's Members and their families. I want to be clear, Peloton made a mistake in our initial response to the Consumer Product Safety Commission's request that we recall the Tread+. We should have engaged more productively with them from the outset. For that, I apologize. Today's announcement reflects our recognition that, by working closely with the CPSC, we can increase safety awareness for our Members. We believe strongly in the future of at-home connected fitness and are committed to work with the CPSC to set new industry safety standards for treadmills. We have a desire and a responsibility to be an industry leader in product safety."
Peloton had previously fought the recall after disclosing that one child died and others were injured in accidents on its treadmills. To see the rest of the story Click Here.