Editor's note: Since publication, Peloton and Lululemon announced a settlement to their suits.
- Stepping further into wholesale, at-home fitness company Peloton announced Thursday it will sell select accessories along with its Bike, Bike+, Tread and Guide products through Dick’s Sporting Goods, according to a company press release.
- The brand will start selling sometime this holiday season within branded fitness shops at over 100 Dick’s stores, as well as on the retailer’s website. This adds to Peloton's decision in August to shift away from a direct-to-consumer model by selling through Amazon.
- The news comes as Peloton lost its lawsuit against Lululemon on Thursday, where the brand had asked a court to declare that its apparel line was not infringing on Lululemon’s patents. The lawsuit stemmed from a cease-and-desist letter Lululemon sent the company last year claiming such infringement. Lululemon filed its own lawsuit against Peloton a few days later for patent and trademark infringement and in January requested Peloton's suit be dismissed. Peloton and Lululemon did not respond to requests for comment in time for publication.
Peloton's new partnership with Dick’s Sporting Goods demonstrates how dedicated it is to changing its longstanding DTC model.
"This partnership is a natural fit for our brand and our member acquisition goals," Jen Parker, Peloton’s senior vice president of global direct sales, said in a statement. "Dick's is a consumer-beloved brand with a large, incremental customer base, offering tremendous upside for us to reach broader audiences and attract potential new Members. Retail remains a critical touchpoint, and we want to provide the in-store experience that many current and prospective Members still covet."
Some would agree that the partnership is a win for the struggling fitness brand.
“It is a major win for Peloton and provides the company with some much-needed good news. Dick’s strong presence and its deep customer reach give Peloton a significant platform through which to promote its wares,” GlobalData Managing Director Neil Saunders said in emailed comments. “Indeed, we believe the footfall levels at Dick’s means Peloton products will get more eyeballs on them than they would in dedicated stores.”
However, it may not be the solution to all of Peloton’s woes. Saunders noted that demand is still waning for at-home fitness equipment, which is an issue compounded by financial pressure on consumers right now.
Peloton has had a slew of changes to its company this year. This month, the brand’s head of marketing, chief commercial officer and co-founders all announced their exits. In August, the brand reported a widened net loss of $1.2 billion.