Peloton Interactive Inc., the luxury fitness equipment maker, is planning to offer a lower-priced treadmill for customers who can’t afford its $4,295 treadmill.
Bloomberg reports the New York-based manufacturer is preparing to launch Tread, a less expensive version to be priced at less than $3,000.
Sources told the news service while the startup offers the cheaper treadmill, it will introduce a more expensive stationary exercise bike and cut the price of its existing bike. The idea is to fuel demand as many of the nation’s gyms remain shuttered.
Under the plan, Peloton will introduce Bike+, a premium bike that is expected to cost more than its $2,245 version, sources told Bloomberg.
As the new bike debuts, Peloton will drop the price of the existing machine to less than $1,900, the sources said.
The company could announce the new products as early as next week, according to the report, days ahead of quarterly results scheduled for Sept. 10.
A Peloton spokeswoman declined to comment.
In May, CNBC reported Peloton’s revenue surged 66 percent during its fiscal third quarter (Q3), as its fitness equipment sold as people stayed home due to COVID-19.
Total revenue grew 66 percent to $524.6 million from $316.7 million a year ago.
CEO John Foley told analysts during call that the pandemic will change consumers’ exercise routines for the long term.
Still, Peloton’s net loss increased during Q3 to $55.6 million, or 20 cents per share, compared with a loss of $38.6 million, or $1.76 a share, a year ago.
Foley blamed the loss on nonrecurring litigation and settlement expenses.
Analysts were expecting the company to report a third-quarter loss of 17 cents, adjusted, on revenue of $487.7 million, according to Refinitiv.