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Peloton is trying to turn the corner with a new offer for its connected fitness bikes.
The New York-based fitness giant has begun selling refurbished bikes at discounts up to $500 lower than the asking price of its newly manufactured models.
The move follows multiple rounds of job cuts and shares of the company plummeting nearly 80% in the last year, including seven consecutive days of losses through Dec. 23.
- Peloton’s refurbished bikes retail between $1,145 and $1,995.
- The restored models are only available in the U.S. and Canada.
- Each refurbished bike comes with the same 12-month limited warranty as new models.
- Subscriptions to Peloton’s fitness offerings are not included with refurbished bike sales.
In October, Peloton announced 500 layoffs, its fourth round of job cuts in 2022.
The company reported lackluster earnings a month later with $616.5 million in revenue in fiscal Q1 2023, down from $805 million for the same period the year prior. The company failed to meet its own expectations of projected revenue between $625 million and $650 million in Q1.
Diversifying Business
Peloton is taking steps to alleviate the losses with a deal with the Hilton hotel chain. As part of the pact, Hilton will feature at least one Peloton bike in all 5,400 of its brand hotels in the U.S.
The deal makes Hilton the first hospitality brand to feature Peloton bikes across its portfolio.
Earlier this year, Peloton secured a deal with Dick’s Sporting Goods to bring its equipment to brick-and-mortar stores, marking the first time Peloton’s products have been sold in retail locations outside its namesake stores.
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