Peloton said the new clothing line will feature a mix of men's and women's apparel, as well as gender-neutral offerings, ranging in price from $15 to $118, and include jerseys, hoodies, tights and shorts.
The new range, and new revenue stream, could both compensate for Peloton's recent move to lower the cost of its signature fitness bike while also challenging the high-end fitness apparel market strength of Lululemon (LULU) - Get Lululemon Athletica Inc (LULU) Report, which purchased the at-home fitness equipment maker Mirror for $500 million in June of last year.
"I couldn't be more thrilled to officially launch Peloton Apparel, a brand that has been influenced by our amazing instructors and at its core is centered around supporting our Members," said Peloton's vice president of apparel Jill Foley. "With each collection, we're offering reliable pieces that support your sweatiest days, your busiest days, your rest days and beyond. Our goal with this brand is to enhance our Members' lifestyles, not just one part of their day."
Peloton shares were marked 5.5% higher in early trading Thursday to change hands at $102.75 each, a move that would still leave the stock nursing a year-to-date decline of around 32.3%.
Lululemon shares, meanwhile, are set to open at a fresh record high Thursday after the athletic and leisure apparel group blasted second quarter earnings forecasts and boosted its full-year profit outlook.
Vancouver-based Lululemon said it sees full year earnings in the region of $7.38 to $7.48, on sales that could reach $6.26 billion, even as supply chain disruptions add stress to the group's logistics over the second half of the year.
Peloton reported a fourth-quarter net loss of $1.05 per share on revenue of $936.9 million, compared to a Street consensus forecast of a 44 cents per share loss sales of $929.6 billion.
Peloton announced that it is cutting the price of its original at-home exercise bike for the second time this year Thursday. Starting today, the company's core bike will cost $1,495, a nearly 20% reduction.
Monthly financing for the bike dropped $10 to $39 per month. While the company said the move was to make the bike's more attainable, it could be a sign that competition is increasing in the at-home workout market.