Peloton is planning to launch an updated bike, treadmill, and new peripherals, as well as tweaking its strategy for selling refurbished equipment.
Peloton Interactive Inc. (PTON) is reportedly planning a series of product refreshes and upgrades as it looks to revitalize its sales, aiming for a product launch in October.
According to a Bloomberg report, Peloton is planning to launch an updated bike, treadmill, and new peripherals. The company could also change its strategy with respect to selling refurbished equipment, according to people familiar with the matter, the report said.
Peloton shares traded 1% lower at the time of writing. Stocktwits data showed the retail sentiment around the company was in the ‘bullish’ territory.
Peloton’s strategic revamp is a part of CEO Peter Stern’s attempt to pivot the exercise equipment maker into one focused on artificial intelligence and wellness, according to the report.
The planned Peloton bike upgrades and product launch come after the company’s fourth-quarter (Q4) results beat Wall Street expectations. However, Peloton issued a weaker-than-expected guidance. It projects first-quarter (Q1) revenue to be in the range of $525 million and $545 million. At a midpoint of $535 million, the projections are lower than Wall Street’s expectations of $545 million, according to Stocktwits data.
Other facets of Peloton’s product revamp include AI integration into the company’s apps and the software powering its hardware, according to the report. Its bike will reportedly get a new rotating screen, while its treadmill will be updated to allow a new mounting structure to attach a monitor.
PTON stock is down nearly 1% year-to-date, but up 201% in the past 12 months.
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