Peloton Plans to Resume Live Classes

Peloton will resume live classes on Wednesday after closing its studios earlier this month.
Author:
Publish date:

Peloton Interactive  (PTON) - Get Report, the subscription exercise-equipment and -service company,  said it would resume live classes on Wednesday.

The New York company earlier this month had closed its studios when an employee tested positive for the coronavirus.

At last check Peloton shares were up 2.4% to $31.81.

Peloton said it would resume classes on the Peloton app, bike, and treadmill starting Wednesday. Classes will be streaming from instructors’ homes instead of from the company's studios.

A company spokesperson said in an email that each instructor has been sent equipment to film his or her classes. Production teams will deliver the content to the Peloton Bike, Tread and App, remotely from their own homes.

"In the near future, additional instructors will begin filming from home in the U.S., U.K. and Germany, allowing us to provide live class offerings on our platform during this time while our studios remain closed," the spokesperson said.

Two to three new live classes will be held daily. The schedule currently focuses on morning classes, but Peloton said it will resume live evening “prime time” classes in the coming weeks.

The company has become more popular over the past month as the coronavirus pandemic has forced gyms to temporarily close and people are being told to stay at home to stop the spread of the virus.

Peloton said on April 3 that an employee at its New York production studio had tested positive for the coronavirus. A few days later the company suspended all live classes from both Peloton Studios New York and Peloton Studios London through April 30.

On Monday, BMO Capital Markets analyst Simeon Siegel downgraded Peloton to underperform from market perform. A few days later the company said it would pause live production of its exercise videos at its New York and London studios through April 30.

Siegel said in a note to clients that he expected strong stay-at-home-related second-half sales for Peloton. But "with the shares +70% from recent lows, so does everyone else," he said, "and we worry that accelerating member growth will prove a pull-forward of demand, rather than an expansion of it."