Please ensure Javascript is enabled for purposes of website accessibility

Peloton Is Expanding Into Apparel With New Adidas Partnership

By Rich Duprey - Updated Mar 16, 2021 at 11:54AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The footwear company announced the deal, but didn't release any details.

Peloton Interactive (PTON 6.51%) could be entering the clothing market after footwear maker adidas (ADDYY 3.40%) announced a new partnership with the connected fitness leader.

While the announcement was vague as to what was to come, adidas hinted there could be cross-merchandising opportunities, saying the two companies "see great potential to surprise and delight our highly engaged communities by multiplying the power of both brands."

Woman exercising in front of TV screen

Image source: Peloton Interactive.

During its investor presentation last week, adidas said it was shifting to a business model mostly focused on direct-to-consumer sales, which will account for about half of total net sales by 2025. It was also looking for e-commerce sales to double to around 8 million to 9 million euros, or between $9.5 billion and $10.7 billion.

The partnership also comes amid a booming at-home fitness market, with Peloton saying it ended 2020 with some 1.67 million connected fitness subscribers.

The cat might have been let out of the bag early when one of Peloton's ride instructors apparently posted a video discussing a "new adidas x peloton collection," articles from which he was wearing.

Also, the U.K. site, an online footwear and apparel retailer, shows images of "adidas x peloton" clothing. Mostly T-shirts, hoodies, and sweatshirts.

Peloton has yet to confirm the partnership, though it is expected to sometime this week.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Peloton Interactive, Inc. Stock Quote
Peloton Interactive, Inc.
$13.90 (6.51%) $0.85
adidas AG Stock Quote
adidas AG
$94.83 (3.40%) $3.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.