This will include his original bike, which retails for $1,445. It will also sell its powerful product known as the Peloton Guide, which costs $295. Excluded from the tie-up are the more expensive Bike+ machine and Tread treadmill. Peloton’s stock rose about 8% in premarket trading. “Post-coronavirus, the retail environment — online and in-store — continues to evolve, and that’s something we’re trying to better understand to make sure the Peloton of the future is calibrated for it,” Cornils said by phone. interview. “We want to make it as easy as possible to own a Peloton,” he added. This will mark Peloton’s first partnership with another retailer to sell its merchandise. Until now, the company has relied on its website and physical showrooms, selling directly to consumers. But under CEO Barry McCarthy, who took over in February, Peloton is committed to expanding its global distribution and reducing customer acquisition costs to return the business to profitability. Peloton began an $800 million restructuring plan after company founder John Foley stepped down as CEO in February as costs spiraled and losses mounted. It has since been testing a subscription model for its equipment as another way to increase sales. Peloton also phased out all of its in-house manufacturing to streamline its supply chain. Earlier this month, the company announced additional cost-cutting measures, including more layoffs, store closings, price increases and an exit from the last-mile delivery business. Peloton’s stock price is down about 70% year-to-date. Its market value has fallen to around $3.7 billion, down from $50 billion in early 2021.
Water tests
“This is a really good start for us, with a digital retailer, to test the waters,” explained Cornils. Analysts speculate that Peloton is looking at ways to expand its content distribution under McCarthy, a content and subscription guru. Cornils said it will be a learning experience for the company to see what customers prefer and how they respond to a self-assembly option. This isn’t something Peloton has offered in the past, but it’s another way the company can keep costs down. “Physical retail will always be an important part of our strategy,” said Cornils. “That’s more a reflection of us trying to match the consumer.” Peloton is set to report its fourth-quarter financial results before the market opens on Thursday. Analysts expected the company to post a loss per share of 72 cents on revenue of $718.19 million, according to the Refinitiv consensus.
