PTON Stock Down 2% Now Despite News on Peloton Partnership with Adidas

Peloton Interactive Inc (NASDAQ: PTON) stock continued with its dip during Thursday’s premarket. Notably, Peloton stock closed yesterday trading at $107.79, down 0.16%. Meanwhile, PTON stocks were down approximately 2.12% during the Thursday premarket trading session. Moreover, they remain down over 28% since the beginning of the year. However, there is hope for the bulls to take over the Peloton stock bear market. According to news outlet CNBC, Peloton and Adidas have made it public that they will work together to ‘create a new line of athletic apparel and lifestyle gear, in inclusive sizes and unisex styles’.

Peloton and Adidas Partnership

Through the partnership between Peloton and Adidas, it is expected to have merchandise ranging from shorts, hoodies, tees, crewnecks, sports bras, and jogger pants. Besides, Peloton and Adidas customers should expect the sizes to go up to 2X, with unisex options available. Worth noting, the merchandise will range between the price of $30 and $85.

Reportedly, sales will begin on March 25 on both companies’ websites. However, the new merchandise will only be available on selected Adidas and Peloton stores. The design of the new Adidas and Peloton products was designed by top cycling instructors, including Robin Arzon, Ally Love, and Cody Rigsby.

“During a time where we are not able to be physically together, we have an incredible opportunity to help grow connected communities and continue to support people as they build their new fitness journeys at home,” said Aimee Arana, general manager of global training at Adidas, in a statement.

The partnership was strategic to provide needed comfort working out in their private space as people observe social distancing. Also in mind is the long-term aspect of their business as the pandemic has significantly disrupted our life normalcy.

Peloton sportswear has not been a major revenue contributor but things are about to shift through the Adidas partnership. Notably, the Peloton clothing section is managed by Jill Foley, the wife of Peloton founder and CEO John Foley.

Peloton has been using its apparel business to attract new customers by giving out discounts to new sign-ups. Notably, Peloton customers who use app-based membership through referral codes are gifted as a sign of motivation.

The fitness industry has been revolutionized by the coronavirus pandemic. Peloton has experienced a sharp uptick in service demand for the past twelve months. However, with a possible coronavirus vaccine around the corners. Peloton stock investors remain vigilant to observe how the vaccine development affects the company’s future growth prospects.

Peloton has a reported market valuation of approximately $31.79 billion with 254.87 million outstanding shares.