Peloton Slips After Rival Nautilus Launches a New Bike

Connected-fitness company Peloton traded lower Tuesday after rival Nautilus launched its new indoor connected bike.
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Peloton Interactive  (PTON) - Get Report shares slipped on Tuesday after rival Nautilus  (NLS) - Get Report launched a new connected indoor bike.

Shares of the New York company dropped 3.9% to $111.85 at last check. Home fitness rival Nautilus was down 6.5% to $19.65.

Nautilus said its new Bowflex C7 connected bike with a touch screen will be available at certain Dick's Sporting Goods  (DKS) - Get Report outlets. The bike offers access to the JRNY digital fitness service.

In addition to the touch screen the C7 also offers users 100 resistance levels along with a variety of workouts.

“A recent survey found that entertainment is a part of most fitness consumers’ workouts with 93% citing at least one form of entertainment they engage in while working out," Nautilus Chief Executive Jim Barr said in a statement.

Adding the JRNY fitness service to the Bowflex C7 "delivers what consumers are requesting." 

The JRNY digital fitness service is available on Bowflex.com and for download in the Google Play  (GOOGL) - Get Report and the App Store  (AAPL) - Get Report and comes preloaded on the C7 bike.

Those who buy the C7 bike get two months of the JRNY fitness service free. After the trial period, a JRNY membership costs $19.99 a month or $149 a year.

The survey conducted by YouGov for Nautilus, Vancouver, Wash., also showed that working out at home on a weekly basis has increased to 73% during the pandemic from 43% before it. 

And 55% of these consumers surveyed said they have purchased fitness equipment since the pandemic started.

"The high demand for home fitness solutions is growing our consumer base and demand for product availability in a variety of places at a range of price points,” added Jay McGregor, Nautilus's vice president and general manager for North America retail.

Last week Peloton stock dropped after a report that consumers are getting frustrated waiting for the stationary bikes and treadmills they ordered from the connected-fitness company.