Peloton recall to cost company $165 million in lost sales

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Peloton is estimating its treadmill recall will cost the company about $165 million in lost revenue during the the current quarter, and result in a $16 million hit to its profits

After weeks of fighting a call by federal safety regulators to recall its Tread and Tread+ treadmills tied to one infant death and reports of 70 injuries, the company admitted Wednesday it had made a mistake and would recall the product. On Thursday evening, it told investors how much it would cost its top and bottom line.CEO John Foley again apologized for not moving sooner to agree to the recall, and admitted that the company's reputation had been damaged by the recall dispute.

The CPSC released details of other incidents, including a child being injured when an adult was using it and"pets and objects" also being pulled under the treadmill by the belt that people walk or run on.The company said it is working on some hardware fixes to stop anything from being pulled underneath. It said it will issue a software update within days that would be a lock-out feature to stop anyone but the owner from being able to turn on the treadmill.

 

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Ya well, a kid died so .... Plus, do some testing

Why would you let your kids near you when you are on ANY treadmill?

Gee, will Peloton’s husband buy them a machine that teaches them safety and laws about safety? Just to firm them up on that, cause they are not looking good......

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