Fitness company Peloton Interactive PTON has enjoyed a strong two years of stock performance since completing a 2019 IPO at $29 per share. The company could see more growth through its latest push in the commercial space.
What Happened: Peloton announced Monday it is expanding its commercial offerings, specifically for the hospitality industry.
Since 2019, Peloton has offered Peloton Bikes at partnered hotels in the U.S., U.K., Germany and Canada.
Through an acquisition of Precor, Peloton will now expand the number of options for commercial customers.
Why It’s Important: The acquisition of Precor gives Peloton more options to package fitness and workout equipment for hotels and other commercial buildings.
Precor offers a full line of strength and cardio equipment that give potential customers a “well-rounded fitness experience” with the combination of the Peloton Bike.
“Our acquisition of Precor not only means we can expand our hospitality offering, but also how we work with other commercial spaces. We’ll be sharing more updates in the coming months,” the company said.
Many hotels likely didn't consider Peloton unless they were only buying fitness bikes. Hotels want packages that include fitness bikes and workout equipment. With the acquisition, Peloton should be able to provide package deals and compete with others for entry into the hotel fitness space.
Peloton released its last full quarterly earnings at the end of August, meaning it will provide first quarter earnings in late November.
The company could use the commercial expansion as a major catalyst for growth and forward guidance.
PTON Price Action: PTON shares were down 2.6% to $100.73 on Monday.
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