Peloton CEO confirms 130% sales increase last quarter
Peloton CEO John Foley reflects on the path to creating the popular at-home fitness brand.
Peloton is voluntarily recalling both of its treadmills after the U.S. Consumer Product Safety Commission urged against using the company's Tread+ machine following reports of a child's death and dozens of injuries.
"The decision to recall both products was the right thing to do for Peloton’s Members and their families," Peloton CEO John Foley said in a statement.
The recalls of around 125,000 units cover the $4,295 Tread+ and the $2,495 Tread treadmills.
PELOTON, CONSUMER WATCHDOG SPAR OVER ALERT TO STOP USING TREADMILL AFTER CHILD'S DEATH, INJURIES
The CPSC urged consumers who have purchased either treadmill to immediately stop using it and contact Peloton for a full refund. The recall warns that adults, children, pets and objects are at risk of being pulled underneath the back of the treadmill "posing a risk of injury or death."
"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+," Foley said. "We should have engaged more productively with them from the outset. For that, I apologize."
The recall comes after weeks of back and forth with the CPSC. Peloton initially pushed back after the consumer watchdog agency urged it to recall the Tread+ product over safety concerns. The CPSC in April issued an alert about its Tread+ exercise machine after more than 70 incidents were reported, including the death of one child, following an accident with the treadmill, Peloton said last month.
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A disturbing video was released by officials of an incident in Virginia that showed a child playing near the Tread+ machine and getting caught under it. The child survived, however, no additional details were revealed regarding injuries. Peloton maintained at the time its Tread+ product was safe to use as long as all warnings and safety instructions were followed.
Consumer Reports, in response to the CPSC’s safety warning, pulled its recommendation for the Tread+.
Peloton's stock dropped more than 7% on the news of the recalls.
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