Peloton Interactive (PTON) - Get Report shares dropped Tuesday after a report that consumers are getting frustrated waiting for the stationary bikes and treadmills they ordered from the connected-fitness company.
Peloton is “promoting equipment it may not deliver until 2021, [and] some would-be owners are losing patience as they endure months-long delivery delays,” according to The Wall Street Journal.
“Consumers are griping online, flooding customer-service lines, defecting to competing brands and sharing tips to recreate the Peloton experience on rival bikes and treadmills.”
The New York exercise hardware/software company has been a stock-market darling during the coronavirus pandemic, as consumers have shelled out beaucoup bucks for its equipment. Peloton bikes start at $1,895, and its treadmills at $2,495.
Peloton shares have more than tripled year to date but have slid over the past month amid positive vaccine news and the order delays.
The stock recently traded at $108.56, down 3.1%
The company attributed the delays to shipping logjams, as the bikes are manufactured abroad and must be shipped here.
“The wait times right now are not how we want people to experience Peloton,” a spokeswoman told The Journal.
In its latest earnings report Nov. 5, Peloton said it would be “operating under supply constraints for the foreseeable future" given the unprecedented pandemic-driven demand for its products.
"As we rapidly scale our organization to meet the extraordinary demand for our products, we realize that some of our members have faced extended delays associated with receiving our products or having support requests fulfilled," the company said in a note to shareholders.