Peloton Interactive Inc (NASDAQ:PTON) shares have been on a downhill ride over the last year. The connected fitness company has cut back production of some of its products, trimmed 20% of its workforce and hired a new CEO to try to turn things around.
Now Peloton is extending the free-trial period for prospective customers.
What Happened: According to Peloton's home trial page on its site, new customers who buy a Peloton Bike or Tread between March 3 and March 22 will get 100 days to decide if they want to keep the product.
Peloton will deliver and install the products. If a customer isn't satisfied following the trial period, the company will pick up the product and refund the entire cost.
Why It Matters: Peloton extended the trial period for testing its products from 30 days to 90 days in 2020 near the start of the COVID-19 pandemic. It's not clear how many Peloton fans became customers as a result of the extended testing period.
Peloton's business took off during that time as people sought at-home means of exercise in the wake of social distancing measures.
When restrictions eased, demand for Peloton products fell off and the company built up excess inventory. Now it seems Peloton is circling back to extended free trials in an attempt to lift demand and level out its supply imbalance.
So, will the extended trial period help the struggling connected fitness company turn things around?
From Last Week: Jim Cramer Turns Positive On Peloton Following Interview With New CEO
PTON Price Action: Peloton shares are down about 78% over the last year.
The stock was down 6.08% at $23.03 late Friday morning.
Photo: courtesy of Peloton.
