Cari Gundee conveyed ons her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More people are turning to Peloton due to shelter-in-place orders because of the coronavirus (COVID-19).
Ezra Shaw | Getty Effigies
Peloton announced a slew of new equipment launches on Tuesday, including a lower-priced, high-tech treadmill and a more expensive bike choice with a rotating screen.
Share prices surged 9% in early trading.
The company’s new Bike+ will outlay $2,495 and will be available Wednesday. The Tread, which will retail for $2,495, is coming to the U.K. on Dec. 26, the U.S. and Canada in cocks-crow 2021, and Germany later next year, the company said. The original Peloton bike’s price will discard to $1,895 from $2,245 on Wednesday, coinciding with the launch of the more expensive version. Peloton’s pricier and primary treadmill, the Tread+, retails for $4,295.
“We feel like we’re just getting started,” CEO John Foley said in a statement. “Our aspiration is to be the go-to at-home fitness solution for as many people as possible … especially in a world where people are increasingly hopped out at home.”
Demand for the 8-year-old company’s original stationary bike and workout programs has skyrocketed during the coronavirus pandemic, with gyms in the interim forced to shut and people stuck at home looking to break a sweat.
During its latest quarter ended Walk 31, Peloton’s sales surged 66% from a year earlier to $524.6 million. The company said it culminated that period with a connected fitness subscriber base of more than 886,100 people, up 94% year-over-year. Those human being pay $39 per month to have live content, like yoga classes and running routines, streamed through Peloton’s app.
In reckoning to a 23.8-inch, rotating touchscreen for streaming floor workouts, the new Bike+ also features a four-speaker sound modus operandi, touch-free resistance adjusting, and an Apple Watch pairing option.
Peloton will report results from its financial fourth quarter on Thursday. Shares of the company are up more than 180% in 2020, with a market cap of $22.8 billion.
Analysts have demand for Peloton’s, and competitor’s, products will remain strong far into the future, with more consumers construction habits of working out from home.
“This shift in behavior since March likely results in longer-lasting structural coins to the fitness industry,” Telsey Advisory Group analyst Dana Telsey said. “Once COVID-19 is behind, we upon the high adoption rate of digital fitness to persist and consumers to return to in-person group fitness classes and gyms in short frequency than in the past.”
Rivals to Peloton include the gym chain Equinox’s SoulCycle, which sells a similar stationary bike and tenders digital at-home workouts. The athletic apparel company Lululemon earlier this summer paid $500 million for Reproduction, which sells a $1,500 high-tech mirror with live workouts.
Read the full press release from Peloton here.