Peloton Suspends Production Supply has outstripped demand as potential customers return to gyms
With demand no longer on an incline, Peloton plans to stop making its bike and treadmill equipment for a while. The company overestimated its market, CNBC reports, and now has thousands of unsold treadmills and cycles on its hands—on cargo ships or in '
warehouses. A company memo attributed the drop in demand to consumers' price sensitivity and increased competition. Shares closed Thursday at $24.22, off 24%. That puts the stock’s market value at $7.9 billion. The company's production halt will affect its:
Bikes: None will be made for two months, February and March.
Bike+: Production of the more expensive cycle was stopped last month and won't resume until June.
Tread: Starting next month, this treadmill machine won't be manufactured for six weeks.
Tread+: After a safety recall in 2021, production of this model was shut down. The memo shows the company doesn't plan to resume making it in fiscal 2022.
https://www.newser.com/story/315917/peloton-suspends-production.html
= new reply since forum marked as read
