What happened
Shares of Peloton Interactive (PTON +0.00%) climbed on Thursday after the fitness equipment maker launched a private label clothing brand.
As of 2:50 p.m. EDT, Peloton's stock price was up more than 8%.
So what
Peloton Apparel will offer an array of women's, men's, and gender-neutral clothing priced from $15 to $118. It will feature performance-tested fabrics that are designed to help people move comfortably both during their workout classes and thereafter. Some styles will also include moisture-wicking and quick-dry functionality.
"With each collection, we're offering reliable pieces that support your sweatiest days, your busiest days, your rest days and beyond," Peloton executive Jill Foley said in a press release. "Our goal with this brand is to enhance our members' lifestyles, not just one part of their day."
Image source: Peloton.
Peloton has sold apparel made by other brands since 2014. The debut of Peloton Apparel marks the first time that most of its clothing items will be from its own private label line.
The new clothes are now available online and in select Peloton showrooms.
Now what
The move signifies a more aggressive push into the athletic apparel market by Peloton and places it in more direct competition with companies like Lululemon (LULU 0.33%). Peloton's new apparel initiative could also be viewed as a counterstrike to Lululemon's recent entrance into the home fitness equipment market. The athletic apparel leader acquired interactive workout platform Mirror for $500 million last year.
With both health-focused companies encroaching on each other's home turf, their rivalry is likely to intensify in the coming years.
