Peloton announces new bike, treadmill

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Peloton announced plenty of new equipment on Tuesday, including a high-tech treadmill and a more expensive bike option with a rotating screen.Stock prices were down 0.7% pre-market on Tuesday.

The company’s new Bike + will retail for $ 2,495 and will be available Wednesday. The Tread +, which will cost $ 4,295, will arrive in the UK on December 26, the US and Canada in early 2021 and Germany later next year, the company said. The price of the original Peloton bike will drop to $ 1,895 from $ 2,245 on Wednesday, coinciding with the launch of the more expensive version. A cheaper treadmill is expected to launch next year for $ 2,495.

“We feel like we’re just getting started,” CEO John Foley said in a statement. “Our goal is to be the perfect home fitness solution for as many people as possible… especially in a world where people are increasingly training at home.

Demand for the company’s original 8-year-old stationary bike and workout programs has exploded during the coronavirus pandemic, with gyms temporarily forced to close and people stuck at home looking to sweat.

In its most recent quarter ended March 31, Peloton’s sales jumped 66% from the previous year to $ 524.6 million. The company said it ended this period with a connected fitness subscriber base of more than 886,100 people, up 94% year-over-year. These people pay $ 39 per month to have live content, like yoga classes and running routines, streamed through the Peloton app.

Peloton will release its fiscal fourth quarter results on Thursday. Shares of the company rose more than 180% in 2020, with a market cap of $ 22.8 billion.

Analysts expect demand for Peloton products, and those of its competitors, to remain strong in the future, with more consumers making a habit of working out at home.

“This change in behavior since March is likely leading to more lasting structural changes in the fitness industry,” Telsey Advisory Group analyst Dana Telsey said. “Once COVID-19 lags behind, we expect the high adoption rate of digital fitness to persist and consumers will return to group fitness classes and in-person gyms less frequently than in the past. ”

Peloton’s rivals include the Equinox’s SoulCycle gym chain, which sells a similar stationary bike and offers digital home workouts. Earlier this summer, sportswear company Lululemon paid $ 500 million for Mirror, which sells a $ 1,500 high-tech mirror with live workouts.

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