Peloton is best known for its high-techfitness bike.- But Peloton execs say that their treadmill will become the bigger category in the long term.
Peloton became famous for its $2,000 bike but the company is betting on its lesser-known - and significantly larger - treadmill to be the big hitter in the long term.
"We feel very good that
"We've actually said we think it could be a bigger category than Bike. Everything we're seeing early suggests that could be true, but it's all about getting the awareness up," he said.
Lynch's comments came after the company reported weaker-than-expected first-quarter earnings results for fiscal 2022. The company cut its annual forecast by up to $1 billion, sending its stock price down as much as 33% in premarket trading early Friday.
After a boom in sales during the early days of the pandemic when consumers were trapped in their homes, Peloton is facing more challenging conditions as people return to gyms, and new at-home fitness concepts flood the market.
Peloton has endured tumultuous months after reports surfaced that a child died and dozens of others were injured while using its treadmill machines.
Peloton recalled its $4,000 Tread+ in May as a result, and it remains unavailable to buy. In August, it rolled out a cheaper version of its treadmill, costing $2,495.
In a note to clients this week, a group of Wedbush analysts said the consumer response to the lower-priced product has been underwhelming so far. The company is now tasked with the challenge of raising awareness of the newer treadmill in the run-up to the all-important holiday shopping season, they said.
"A considerable gap remains between Peloton's near-ubiquitous Bike and the rest of its offerings," Wedbush analysts wrote.
Wheareas sales of the bike had benefitted from the pandemic, "Peloton will need to spend handsomely on marketing and advertising for the Tread to deliver the much-needed 'second act' for the company," they said.