Peloton predicts $195M profit by the fourth quarter
A recent 141% increase in sales has Peloton, an interactive fitness company, predicting a profit of $195 million by the fourth quarter.
Peloton, an American-based fitness company experienced a popularity increase due to the COVID-19 pandemic lockdown that had people searching for new ways to exercise while at home.
$195 million in predicted profit seems like a lot but it isn’t when juxtaposed with the $1.12 billion Peloton is meant to make by the fourth quarter instead.
The company had to recall its treadmill machines after many users experienced accidents that led to injuries and the death of one child. This caused Peloton to pause the sales of two models of its treadmills and the launch of another one.
Peloton is also giving 100% refunds to its customers and a three months long waiver on the subscription fees of its treadmill customers. In spite of this, the demand for Peloton’s cycles is still on the rise and the company has predicted that the cycles will sell three times more than they did in the last two years by the fourth quarter.
To aid better customer satisfaction, Peloton has added new content like Pilates classes to its exercise machines and is also exploring the chances of expansion to Australia.