Peloton introduces its personal clothes model

Diving letter:

  • Fitness company Peloton announced the launch of an apparel brand, Peloton Apparel, on Thursday, according to a company press release.
  • Peloton Apparel will have signature styles that are repeated from season to season, but with new colors and design elements.
  • The Fall 2021 collection includes men’s, women’s, and gender-neutral styles ranging from $ 15 to $ 118 and is available online, in select Peloton showrooms, and through the company’s Facebook and Instagram accounts.

Dive Insight:

In addition to selling bikes, treadmills, and streaming fitness classes, Peloton has been selling clothing for years. So far, however, clothing has been selected in cooperation with brand partners. For the first time ever, Peloton is offering an apparel selection where the majority of products are from its own private label.

“Our goal with this brand is to improve the lifestyle of our members, not just part of their day,” said Jill Foley, vice president of Apparel. The private label has been influenced and tested by peloton coaches, members and non-members who wore clothing during the peloton workout “to ensure that every style is performing and body-hugging,” according to the company.

Peleton is entering a highly competitive category with the launch of its apparel label. Sports retailer Lululemon announced this week that it plans to exceed its 2023 sales target by the end of this year, reporting a 61% increase in net sales for the quarter to $ 1.5 billion. Gap Inc.’s Athleta brand saw revenue increase 35% over 2019 and its second quarter year-over-year increase of 13%. Even Target has an impact on the segment, with its all in motion activewear brand that grossed $ 1 billion in its first year.

Peloton’s brand awareness was in full swing during the pandemic. As activities such as going to the gym slowed significantly to contain the spread of COVID-19, the home fitness company has been viewed by many as an alternative to maintaining a fitness routine at a time of social separation.

This spring, the company, in partnership with the U.S. Consumer Product Safety Commission, conducted a voluntary recall of its Tread + treadmill following reports of injuries and the death of a child. At this point, the company also stopped selling and distributing the Tread +.

In its latest earnings, Peleton reported $ 937 million in revenue for the quarter on a net loss of $ 313.2 million. The company announced that it is cutting the price of its original bike by $ 400 and is introducing revised funding options for other products to make its offerings more accessible. “We believe we are still in the first inning of the growth of the connected fitness industry and have the opportunity to expand our leadership role as the pioneer in this category,” said CEO John Foley on a conference call with analysts.

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