By Team

MIAMI (CBSMiami) – Peloton says it will likely be months before it can sell its treadmills again.

Earlier this week, the company recalled both of its models to address safety concerns.

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On Thursday, Peloton CEO John Foley said he hopes that at least one of them will be back on the market by July.

Peloton estimates the recall will lead to about $154 million in lost sales.

Last month, the U.S. Consumer Product Safety Commission warned people with children and pets to immediately stop using the Peloton Tread+ treadmill after a 6-year-old child was pulled under the rear of the treadmill and died. Injuries to the other children, who were also pulled under the Tread+, included broken bones and cuts.

The safety commission, which is still studying the Peloton Tread+ treadmill, said it appears that its design, including the band and its height off the floor, made it more dangerous than other brands.

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Peloton said the $165 million hit to its revenue this quarter includes $105 million in missed sales of the treadmills, and $50 million that will go to paying full refunds to those who want to return the recalled treadmills, which cost $4,200 each.

The company estimates about 10% of the recalled treadmills will be returned between now and the end of June, but said others may be returned later since people have until November of next year to get a full refund.

Peloton, best known for its stationary bikes, has seen its sales explode during the pandemic as virus-wary people have avoided gyms and worked out at home.

On Thursday, the company said its sales soared 141% to $1.26 billion in the quarter that ended March 31, compared to the same period a year ago. It posted a loss of $8.6 million in the quarter, or 3 cents per share, which was better than the loss of 11 cents per share that Wall Street analysts expected, according to Zacks Investment Research.

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