The annual report of Peloton Interactive Inc. publication will be delayed. According to the company, they need more time to sort out the issues related to the accounting linked to the restructuring efforts.
The new plans included shifting the in-house deliveries from its warehouses to partners. These changes will result in new accounting that will prevent the company from announcing the 10-K report on time, as per filing Monday.
Peloton said that it needs more time to complete the disclosures for the fourth quarter, including the management assessment for internal control effectiveness over the reporting of accounts and other strategic business developments.
Peloton delivered its fourth-quarter earnings in clouding estimates for the current quarter. The more in-depth 10-KI filing will follow soon. However, the management has assessed that it will not be able to complete the necessary audit in time with Ernst & Young LLP, the accounting firm that is doing the auditing.
The investors have taken the delay in its stride. The shares of Peloton are already down by more than 70% this year, and they remained unchanged after the announcement.
Peloton, which thrived in the early days of the pandemic before slumping, has now made comeback efforts with changes in its warehouse operations. The company has announced that it will outsource manufacturing to external factories, lay off hundreds of workers, and reduce its customer service operations.
Peloton has also started selling bikes and its accessories from the Amazon.com platform for the first time and working its way to manage the inventory pile-up.
The company gave a bleak forecast last week for the current quarter as sales fall steeply and losses pile up. The revenue is forecasted to be $ 625 million to $650 million, short of the estimated $773 million analysts expected. Its adjusted loss is projected at $90 million to $115 million.
