September 28, 2022

Advertisement
The deal, which will help expand distribution of its stationary bikes, comes in the middle of a turnaround effort by the company’s new chief executive.
Send any friend a story
As a subscriber, you have 10 gift articles to give each month. Anyone can read what you share.
This article is part of our Daily Business Briefing

Peloton said on Wednesday that it had reached a deal with Amazon to sell exercise equipment, accessories and apparel on the retailer’s U.S. website, as the maker of stationary bikes tries to reinvigorate sales.
The deal is Peloton’s first attempt to sell products outside its direct-to-consumer model, like its e-commerce site and showrooms. The products available through Amazon include the Peloton Bike, priced at $1,445, and the Peloton Guide, a training device listed for $295. The company’s more expensive Bike+ machine and Tread treadmill are not available on Amazon, but can still be found on Peloton’s site.
“This collaboration allows Peloton to expand its distribution,” the company said in a statement.
Peloton, a winner in the early months of the pandemic as people were stuck in their homes, has struggled since Covid-19 restrictions have eased and people have begun to feel more comfortable returning to gyms.
Peloton announced plans this month to raise the prices of some products and slash roughly 784 jobs by closing stores and eliminating its warehouses. The move was a part of an $800 million cost-cutting strategy by the company’s new chief executive, Barry McCarthy, the former chief financial officer of Spotify and Netflix who replaced John Foley in February.
That month, Peloton also laid off 20 percent of its corporate work force. Other turnaround efforts include an announcement in July that Peloton will outsource its manufacturing to an overseas company.
In May, Peloton said its revenue fell 24 percent in its first quarter from a year earlier, to $964 million. The company will report its second-quarter earnings on Thursday.
Advertisement

source

Leave a Reply