Peloton Interactive (PTON) CEO John Foley said Thursday that a tragic accident involving the company's newly-released treadmill has resulted in the death of a young child.
In a blogpost published on the company's website, Foley said the accident involved a Peloton Tread+, which was released in the spring of last year.
"While we are aware of only a small handful of incidents involving the Tread+ where children have been hurt, each one is devastating to all of us at Peloton, and our hearts go out to the families involved," Foley said.
"We design and build all of our products with safety in mind," Foley said. "But in order to help ensure that you and your family stay safe with Peloton products in your home, we need your help."
Peloton shares were marked 4% lower in early afternoon trading Thursday to change hands at $103.45 each, extending their year-to-date decline to around 30%.
Last month, Peloton posted reported sales of more than $1 billion over its fiscal second quarter, as well as a bottom line that was more than double the Street consensus forecast, but cautioned that Covid-19-related delivery delays would “… continue to present challenges to returning our delivery times to pre-pandemic levels,” putting a dent in future earnings.
The company said it would invest more than $100 million in air freight and expedited ocean freight over the next six months to improve delivery times.
For the current quarter, Peloton said it expects revenue of $1.1 billion. It raised its sales forecast for the full fiscal year to $4.08 billion, up from previous guidance of $3.9 billion.