Peloton beats sales estimates on home workout craze By Reuters

(Reuters) -Peloton Interactive Inc beat Wall Street estimates for third-quarter revenue on Thursday as more people snapped up its exercise bikes and treadmills to work out indoors during the COVID-19 pandemic.

However, Peloton (NASDAQ:)’s shares fell 6% to $78.80 in extended trade, a day after the company issued a recall of its treadmills following reports of multiple injuries and the death of one child in an accident.

Its results statement made no mention of the recall, but Peloton said it would announce revised full-year guidance on its earnings call.

All eyes are on how Peloton plans to navigate the fallout from the recall, with analysts expecting the incident to threaten the company’s reputation, drive up one-time financial costs and disrupt operations.

Peloton emerged as a pandemic winner as home workouts became all the rage during prolonged lockdowns, but investors are now closely watching how demand will holdup as vaccine rollouts in key markets allow fitness centres to gradually reopen and enthusiasts to train outside.

Revenue at Connected Fitness, which includes interactive videos that stream live classes, jumped 139.9% to $1.02 billion in the quarter, while its Connected Fitness subscriptions increased 135% to about 2.08 million.

The interactive fitness equipment maker said total quarterly revenue rose 141% to $1.26 billion, beating analysts’ estimates of $1.11 billion, according to Refinitiv data.

Net loss attributable to Class A and Class B shareholders narrowed to $8.6 million, or 3 cents per share, in the third quarter, compared with a loss of $55.6 million, or 20 cents per share, a year earlier.