Peloton Announces Tread+ will be Back in 2024
Peloton Tread+ like the Return of the Jedi, is making a comeback.
Peloton announces Tread+ will return in 2024
During the Peloton (PTON) earnings call for its Q4 period ending June 30, 2023, CEO, Barry McCarthy announced the return of the Peloton Tread+.
““ Peloton is bringing back the ultimate workout experience. The Tread+ will be on sale this holiday season for early 2024 delivery. The popular Tread+ will be available to order in the US this holiday season, with first shipments about six weeks later.”
McCarthy then went to say:
“The first 10,000 Tread+ units will be fulfilled from existing inventory. After the first 10,000 machines are sold, Peloton will start manufacturing new devices again. We plan to have a limited number of Tread+ units based on existing inventory, once this quantity is gone, there will be a period of delay before we can manufacture new Tread+ treadmills to fulfill additional demand.
We will not begin delivery of new units until our field retrofit campaign is well underway and expect our first installations of the rear guard to take place in January 2024.”
Peloton Tread+ to come back from recall exile to be available again for sale
To remind readers, the Tread+ specifications of this highly popular treadmill include the following:
PELOTON TREAD+
72.5 Length x 36.5 width footprint
67 inches of running deck
Shock-absorbing slat deck
32-inch HD touchscreen
Built-in forward facing Soundbar.
Knobs to with jump button control speed and incline (up to 15%)
Please Note the Tread+ requires 20 inches on the left and right side, 20 inches in front plus, 78.7 inches for the rear.
The new price point of Tread+ at approximately $6,000 reflects its unique premium status, and Peloton promises to deliver with a renewed focus on safety.
Peloton Members Safety First
The Rear Safety Guard, approved by the US Consumer Product Safety Commission, is a revolutionary design that pivots away from the treadmill when it contacts an object. This instantly shuts off the power and decelerates the belt, keeping everyone, including pets and kids safe from harm. The Peloton Supply Chain and Field Service teams are working diligently to manufacture the rear guard and scale service networks with specialists who can install them quickly.
If you have not yet registered for your free rear guard and professional in-home installation, visit the following page and register.
Previous Tread+ Owners Return Deadline
As part of the Tread+ Recall, existing owners can still choose to return their Tread+ to Peloton to get a full refund on their purchase price. The deadline to return the Tread+ was recently extended until November 2023.
Peloton Tread+ Excitement
The return of the Peloton Tread+ is welcomed by Peloton enthusiasts. It is a treadmill with a die-hard fan following that has patiently waited since 2019 for its return. It will be interesting to see if the increased price will keep members away. We are betting the first 10,000 will sell out quickly, so be sure to put your order in once available so as not to miss out.
In addition, the newer production units need to be tested and benefit from time used in the field, so those first-in-stock units look pretty enticing.
Peloton Financial Note
The financial news from the earning call was not as happy as the return of the Tread+. Peloton reports missed revenues and expense forecasts as tens of thousands of members canceled their memberships for the most part, due to the Peloton bike recall for the seat post, leaving millions of bikes unusable. Peloton hopes to win these members back. McCarthy said that profitability is still at least six months or more away. He mentioned over 250,000 new members had signed up for the free tier of workouts, but this pales compared to lululemon’s 9 million sign-ups in less time for their Free Tier of Studio App workouts.
It appears Peloton has more work to accomplish a growth path back to profitability. It is hard to know if investors will remain for the turnaround story conclusion.
