DJ Peloton's CFO Says a Cheaper Treadmill Could be Coming -- Barrons.com
By Shaina Mishkin
The next Peloton Interactive product probably won't be a rowing machine or an exercise bike, said the company chief financial officer Jill Woodworth. But a lower-priced treadmill could be in the cards. "We believe the running and boot camp category is two-to-three [times] the size of the bike category," she said. "If you think about our priorities, that is first and foremost on our minds."
Woodworth addressed new product rumors, the company's subscription model, and its much-discussed holiday commercial during a Barron's Investing in Tech call. The conference takes place every Wednesday until July 15.
"The only category that we have spoken explicitly about is our desire to have a lower-priced tread, or a tread that's priced more in line with our existing bike," Woodworth said. The price of the company's stationary bike starts at $2,245, according to the company's website, while its treadmill begins at $4,295.
While a rower "over time, could be interesting," Woodworth said, she sees that market opportunity as smaller than the bike, and "much, much smaller than tread and boot camp."
Peloton shares (ticker: PTON) have been rising throughout the coronavirus crisis. Of the 26 analysts polled by FactSet, 24 currently rate Peloton Buy or Overweight -- despite attention from a short seller before the crisis that briefly sent shares falling.
Asked about the skeptical view that Peloton's app, which charges $12.99 a month, could draw users away from its $39 monthly membership, Woodworth characterized the app as "somewhat of a lead generation tool for our connected fitness."
While the platform was originally intended as a companion app for members while they traveled, Woodworth said it gained steam after Peloton released the Tread and expanded its digital offerings. "What we see is it's an incredible way for people to be introduced to the Peloton community," she said.
During the call, Woodworth also addressed Peloton's controversial holiday commercial, which stirred up a social media storm -- and her view of what the reaction said about popular views on fitness. "I think some of the backlash we got represents a lot of the baggage that has been in the fitness category for years and years," she said, which has historically been "centered around weight loss" and fad products. "That's just not how we see ourselves."
"I think it was also just a representation that people think that if you give someone the gift of fitness, that you're giving them the message that they need to lose weight," Woodworth added, "and that's never been any part of our brand."
Email: Shaina Mishkin at firstname.lastname@example.org
(END) Dow Jones Newswires
July 09, 2020 05:29 ET (09:29 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
该公司首席财务官吉尔·伍德沃斯(Jill Woodworth)表示，下一款Peloton Interactive产品可能不会是划船机或健身自行车。但一款价格较低的跑步机可能会出现。“我们相信跑步和新兵训练营的门类是2到3个。”[泰晤士报]“自行车种类的规模，”她说，“如果你考虑我们的优先事项，那是我们首先考虑的问题。”