Peloton Interactive will place its high-end exercise bike at Costco Wholesale stores in the US, as part of a partnership between the two companies. The warehouse chain will sell the fitness company's Bike+ at 300 of Costco stores and online from Nov. 1 through Feb. 15, the companies said in a joint Tuesday statement.
"We're excited to learn from this first seasonal collaboration in the US and hopefully expand distribution of Peloton products to new geographic markets with Costco in the future," Peloton Chief Emerging Business Officer Dion Sanders said in the statement. The partnership is part of the fitness company's plan to expand its third-party retail relationships.
Peloton's shares were down 1.7% in midday trading, while Costco's were flat. The bike is expected to be sold at a price of $1,999 in stores and $2,199 online, according to the companies, compared with the list price of $2,495 on Peloton's website. Users pay an additional $44 per month to access Peloton's content on the interactive exercise device.
"Costco allows the company to create additional exposure for its premium connected fitness experience among an affluent, net-new audience during the important holiday season," according to the joint announcement. Peloton benefited from a surge in demand for its exercise bikes during initial lockdowns arising from the COVID-19 pandemic, but struggled to win new customers as offices and gyms reopened.
In August, the company reported fiscal fourth-quarter revenue of $643.6 million, up from $642.1 million the year before, while its per-share loss narrowed on a yearly basis. At the time, Peloton guided revenue in the $2.4 billion to $2.5 billion range for fiscal 2025, implying a 9% decline at the mid-point from the previous year.
Earlier in 2024, the exercise equipment maker disclosed plans to slash 15% of its workforce as part of a restructuring program to save more than $200 million in costs by the end of fiscal 2025. Peloton announced in May that Barry McCarthy was stepping down as chief executive. During a fourth-quarter earnings conference call in August, interim co-CEO Karen Boone told analysts that the company had narrowed its list of candidates to succeed McCarthy.
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