Peloton is going into the apparel business to compete with Lululemon

Peloton Inc started as a fitness business, the company is focused on providing workout classes to people in the comfort of their homes.  Users can either pay for the application access only and they can join the workout classes virtually via their phone from home. Another option is, they can order a treadmill or a peloton bike and have full access to all the functions on the app.

Peloton membership fee prices

Peloton treadmill price ranges from $2,495 to $3,065 depending on addons like lightweights, strength band, mat, etc.

Peloton App price

Peloton digital app prices cost $12.99 per month plus tax for the app only, for bike and thread owners, the peloton app includes all access membership costs $39 per month.

As a public company, Peloton needed to find more ways to generate income so they could remain valuable and return value to investors. Peloton has decided to venture into the apparel market as they try to compete with Lululemon for market share.

Peloton share jumped by 6.83% soon the news broke out. PTON stock is now selling for $114 per share. Lululemon is the biggest company that focuses on flexible and wearable fitness clothes, the company has become so successful with it that its stock rose from $13.50 to $425.58 per share. Lululemon stock symbol is LULU.

If Peloton follows the same step, they can diversify their business and it can later result in a much higher stock price in the near future.