Peloton’s business still haunted by recalls
by Victoria Song from The Verge - All Posts on (#6E3MT)
Peloton said in its Q4 2023 earnings call that a recent bike seat recall was costlier than expected. | Illustration by Alex Castro / The Verge In its latest earnings call, Peloton reported a net loss of $242 million for the quarter. It also lost 29,000 subscribers from last quarter and had a higher-than-anticipated monthly churn of 1.4 percent. While some of that was attributed to summer doldrums, Peloton noted that costs for a recent bike seat post-recall substantially exceeded" initial expectations to the tune of $40 million. An estimated 15 to 20 thousand members also chose to pause their subscriptions ahead of receiving replacement seats.
But speaking of recalled products, Peloton CEO Barry McCarthy said in its quarterly shareholder letter that the company plans to resume US presales of the Tread Plus this holiday season for a retail price of around $6,000. (For context,...