Peloton shares fall after it posts wider-than-expected loss, falling sales due to Bike recall, seasonality
Peloton’s shares fell after the company posted a wider-than-expected loss and said sales fell due to a Bike recall and seasonality. The company’s Q1 2021 earnings report showed a net loss of $108.7 million and revenue of $757.9 million, down 3.9% from the same period a year earlier. The loss for the quarter was driven by the the recall of its Tread+ product in the US and Canada, as the company cautioned that it would take several quarters to restore sales figures to pre-recall levels. Additionally, the company cited seasonality in product sales and disruption to its supply chain due to the coronavirus pandemic as affecting the company’s sales.