Peloton Delays 10-K Annual Report to Complete Accounting


Peloton’s sales have plunged and costs connected with its turnaround effort have surged.



Photo:

Bess Adler for The Wall Street Journal

Peloton Interactive Inc.


PTON -8.50%

said it needs to delay filing its annual report with securities regulators, the latest setback for the maker of internet-connected-fitness equipment.

Peloton said in a filing Monday it needed more time to complete the accounting and disclosures in connection with impairment charges recorded in the fourth quarter, which ended June 30. The charges resulted from Peloton’s plan to exit its field operations warehouses, a move announced earlier this month as part of a broader cost-cutting plan.

Having more time, Peloton said, would assist in evaluating the internal controls over financial reporting on these developments and for its accountant, Ernst & Young LLP, to complete an audit.

Peloton said it expects to file the report within 15 days of the original deadline, which was Monday.

The company reported a loss of more than $1.2 billion in the most recent quarter, as fitness-equipment sales plunged and costs connected with its turnaround effort surged. It recorded losses of $2.8 billion in the year ended June 30.

The company also changed its chief executive and chief financial officer earlier this year.

Barry McCarthy

succeeded Peloton co-founder

John Foley

as CEO in February and Liz Coddington stepped in as CFO in June after

Jill Woodworth

exited the role.

Peloton has been on a wild ride, announcing its CEO was stepping down and thousands of jobs would be cut, despite seeing a surge in sales early in the pandemic. Here’s why Peloton became a viral success, and why it’s spinning out now. Photo illustration: Jacob Reynolds

Write to Sharon Terlep at sharon.terlep@wsj.com

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