Question
Locate a Wall Street Journal article where the predicted sales forecasts and the actual sales for a quarter resulted in a large discrepancy. As an
Locate a Wall Street Journal article where the predicted sales forecasts and the actual sales for a quarter resulted in a large discrepancy. As an external investor, how would use possibly apply the predictive analysis concept to evaluate the company for future investments?
Article is below.
Peloton Recalls 2.2 Million Bikes, Customers Told to Immediately Stop Using Them.
Peloton Interactive PTON 1.17%increase; green up pointing triangle
is recalling 2.2 million exercise bikes due to faulty seat posts that could break and may cause injuries, the company said Thursday.
The at-home exercise company received 35 reports of instances in which the adjustable post holding up the stationary bikes seat broke and detached while customers used the machine. There were 13 reports of injuries, ranging from a fractured wrist to bruises.
The recall affects nearly 2.2 million bikes sold in the U.S. for about $1,400 from January 2018 to May 2023 through Peloton, Dicks Sporting Goods and Amazon. The affected exercise bikes have the model number PL01.
People should immediately stop using the affected bikes and contact Peloton for a free repair, the U.S. Consumer Product Safety Commission said. It added that Peloton is offering a free seat post that can be self-installed.
hares fell 8.9% to $6.86, a new all-time low. The stock has fallen 96% from its high in late 2020 during the coronavirus pandemic.
Peloton said it was working with the CPSC for the voluntary recall. The exercise-equipment company detailed the issue and reported injuries in a Securities and Exchange Commission filing last week. The company said in the filing that it notified the CPSC.
Our commitment to Member safety is unwavering, the company said Thursday. For Peloton, it was important to proactively engage the CPSC to address this issue and to work swiftly and cooperatively to identify a remedy.
Last week, Peloton reported a wider-than-expected loss in its latest quarter. The company has been struggling to unload its unsold web-connected bikes and treadmills. It is shifting its focus from selling equipment to selling subscriptions. For the quarter ending in March, it had about 3.1 million subscribers, an increase of 74,000 from the end of December.
The company, which sells stationary bikes, treadmills and other equipment with live and on-demand classes, surged in popularity during the pandemic, when gyms closed and many people tried to work out at home. Peloton expanded rapidly to match the demand, resulting in a glut of bikes as the pandemic eased.
Two years ago, Peloton agreed to recall its treadmills after federal safety regulators urged them to do so following reports of injuries and at least one death. The company initially rebuffed the demands but later apologized and agreed to recall the machines and halt sales of its Tread+ treadmill model.
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