Peloton Interactive (PTON -0.32%) could be entering the clothing market after footwear maker adidas (ADDYY 5.60%) 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."
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 Footy.com, 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.
