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The peloton on Tuesday announced the launch of new equipment, including a more expensive bike option with a high-tech treadmill and rotating screen.
Share prices were down 0.7% in Tuesday’s premarket.
The company’s new bike + will cost $ 2,495 and will be available on Wednesday. The company said Trade +, which will retail for $ 4,295 on December 26, arrives in the US and Canada in early 2021, and Germany early next year. The price of the original Pelton bike will drop from $ 2,245 to $ 1,895 on Wednesday, with the launch of the more expensive version. A low-priced treadmill is expected to launch next year for $ 2,495.
“We think we’re just getting started,” CEO John Foley said in a statement. “Our goal is for more and more people to go for in-home fitness solutions … especially in a world where people are increasingly working at home.”
Demand for the 8-year-old company’s original stationary bike and workout programs has skyrocketed during the Coronavirus epidemic, forcing the gym to close temporarily and people stuck at home to see a sweat.
During its latest quarter ended March 31, peloton sales rose 66% to $ 524.6 million compared to a year earlier. The company said the period ended with an associated fitness subscriber base of over 886,100 people, up 94% year-over-year. Those people have paid $ 39 per month, including yoga classes and ongoing routines, streamed through Peloton’s app.
The Peloton will report its fiscal fourth quarter results on Thursday. The company’s shares are up more than 180% in 2020, with a market cap of $ 22.8 billion.
Analysts expect demand for the peloton, and competitive, products to remain strong in the future, with more consumers working out of home.
“This change in behavior since March is the result of long-lasting structural changes for the fitness industry,” said Tana Advisory Group analyst Dana Helsey. “Once COVID-19 lags behind, we expect digital fitness to maintain a high adoption rate and consumers return to in-person group fitness classes and gyms at a lower frequency than in the past. ”
Peloton’s rivals include the SoulCycle of gym chain Equinox, which sells a similar stationary bike and provides digital facility for in-home workouts. Athletic apparel company Lululemon O had earlier paid $ 500 million for Mirror in the summer, which sells a $ 1,500 high-tech mirror with live workouts.
Disclosure: CNBC Parent is an investor in Comcast-NBCUniversal Peloton.