Dive Brief:
- At-home fitness company Peloton on Thursday announced the launch of a private label clothing brand, Peloton Apparel, according to a company press release.
- Peloton Apparel will have signature styles that repeat from season to season, but with new colorways and design elements.
- The Fall 2021 collection features men's, women's and gender-neutral styles ranging in price from $15 to $118 and is available online, in select Peloton showrooms and via the company's Facebook and Instagram accounts.
Dive Insight:
Along with selling bicycles, treadmills and streaming fitness classes, Peloton has been selling clothes for years. Up until this point, though, its clothing selection has been done in collaboration with brand partners. Now, for the first time, Peloton is offering an apparel selection where the majority of the products are from its own private label.
"Our goal with this brand is to enhance our Members' lifestyles, not just one part of their day," said Vice President of Apparel Jill Foley. The private label brand has been influenced and tested by Peloton instructors, members and non-members, who have worn apparel while completing Peloton workouts "to ensure every style is high-performing and body-inclusive," according to the company.
Peleton enters into a highly competitive category with the launch of its apparel label. Athletic retailer Lululemon revealed this week that it expects to surpass its 2023 revenue target by the end of this year, and reported a net revenue increase of 61% in the quarter to $1.5 billion. Gap Inc. brand Athleta saw sales rise 35% from 2019, with comps up 13% year over year in Q2, and expanded its partnership with REI to have a curated selection of its products featured in 135 REI stores. Even Target is making an impact on the segment, with its All in Motion activewear brand generating $1 billion in its first year.
Peloton brand awareness kicked into high gear during the pandemic. As activities like going to the gym slowed considerably to stymie the spread of COVID-19, the at-home fitness company was seen by many as an alternative to keeping a fitness routine going during a time of social separation.
This spring the company, along with the U.S. Consumer Product Safety Commission, issued a voluntary recall of its Tread+ treadmill following reports of injuries and one child's death. The company also stopped the sale and distribution of the Tread+ at that time.
In its latest earnings, Peleton reported a revenue of $937 milion for the quarter, with a net loss of $313.2 million. The company announced that it is lowering the price of its original bike by $400 and is introducing revised financing options for other products in order to increase the accessibility of its offerings. "We believe that we are still in the first inning of connected fitness industry growth and we have the opportunity to extend our leadership as the pioneer of this category," CEO John Foley said on an earnings call with analysts.
