Peloton stock crashed by 20 percent Thursday on reports that the fitness machine manufacturer had temporarily halted production on some of its stationary bikes and treadmills thanks to a plunge in consumer interest.
The company plans to put the breaks on production of its more moderately-priced $1,495 model bikes for two months, and it won’t be making anymore Tread machines for six weeks beginning in February, CNN reports. This latest move comes after Peloton put the kibosh on production of its more deluxe $2,495 bikes in December. Those machines won’t return to the assembly line until June.
Internal documents spied by CNBC reveal that the company has seen “significant reduction” of demand for its goods thanks to its own high prices and increased competition, leading to “thousands of cycles and treadmills sitting in warehouses or on cargo ships” and an urgent need to “reset its inventory levels.”
The December production halt arrived with other bad news for the company. It might have seemed like great free publicity to kill off “Mr. Big” Chris Noth while he was riding a Peloton in the premiere episode of Sex and the City‘s limited spinoff And Just Like That, but reviews for the continuing misadventures of the three Samantha-less sads were not good to worse.
And within days of the show’s release, Noth was accused of sexual assault by two women. Noth has vehemently denied the claims, calling them “categorically false,” but the plans to include him in the series finale have already been scrapped.
“I think we were very lucky that those changes were able to be made,” star Cynthia Nixon said Thursday, “and I think we are very proud of our show.”
Peloton has also made ill-conceived moves that it could, or should, have seen coming. For instance, faced with a debilitating sales slump after a year that saw the company lose an astounding 76 percent of its value, executives saw fit to raise its prices starting January 31. Folks who still want its Bike will now have to fork over another $250 for delivery and setup, which used to be included in the price. Customers seeking the Tread will be expected to cough up an extra $350 to get the machine into their homes and running.
These hikes come after Peloton’s most recent earnings report showed a 17 percent drop in sales of its treadmills and bikes.
The tenth and final episode of And Just Like That will air on February 3.
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