Retail

Peloton and Adidas are working together on an apparel line

Key Points
  • Peloton and Adidas have teamed up to create a new line of athletic apparel and lifestyle gear in inclusive sizes and unisex styles.
  • The merchandise goes on sale March 25 on both companies' websites and in select Adidas and Peloton retail stores.
  • The companies say it's the start of an ongoing collaboration.

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The new collection — labeled as adidas x Peloton SS21 — was designed with help from some of Peloton's top cycling instructors, including Robin Arzón, Ally Love and Cody Rigsby.
Source: Peloton

Peloton and Adidas announced Thursday they're working together to create a new line of athletic apparel and lifestyle gear that come in inclusive sizes and unisex styles.

The merchandise — which includes shorts, hoodies, tees, crewnecks, sports bras and jogger pants — sells for $30 to $85. Sizes go up to 2X, and unisex options are available. Starting March 25, they'll be on sale on both companies' websites and in select Adidas and Peloton retail stores. The companies say it's the start of an ongoing collaboration.

"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," Adidas General Manager of Global Training Aimee Arana said in a statement.

The collection was designed with help from some of Peloton's top cycling instructors, including Robin Arzon, Ally Love and Cody Rigsby.

Beginning March 25, the new line will be on sale on Adidas' website, Peloton's website, and in select Adidas and Peloton retail stores.
Source: Peloton

Adidas is the latest clothing company to join Peloton's roster of brand partners. In addition to manufacturing its own pieces, Peloton sells apparel and accessories made by Lululemon and Nike. The company also sells products from more niche players like Beyond Yoga and Spiritual Gangster.

Its apparel business is led by Jill Foley, wife of Peloton founder and CEO John Foley. It has never been a strong revenue driver, but it's a way for the company to entice new sign-ups for its app-based membership via referral codes that offer clothing discounts. In the past, Peloton has noted that apparel sales are often offset by those referral discounts and other annual markdowns.

Peloton doesn't break out its apparel sales. Instead, they're folded into the company's connected-fitness product division.

By working with partners like Adidas, Peloton stirs up more interest in its brand and gives its subscribers access to exclusive content. Peloton said it will hold a series of on-demand classes beginning Thursday to commemorate the Adidas partnership. The company will also hold a special live class on March 25.

Other at-home fitness equipment manufacturers have taken a similar approach. The athleisure brand Fabletics, for example, has a partnership with rowing machine Hydrow. It designs and produces all Hydrow apparel, and Hydrow's trainers exclusively wear Fabletics during workouts. SoulCycle, the New York-based fitness company owned by Equinox, also collaborates with Lululemon and Nike on limited SoulCycle-branded gear.

The financial terms of Peloton's deal with Adidas weren't disclosed.

Peloton shares dipped 1.2% on Thursday and have fallen about 30% year to date. However, the stock is still up more than 300% following a massive rally throughout 2020. The company has a market cap of more than $31 billion.

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