Peloton's new AI-powered bikes, treadmills get off to slow start

"Peloton Interactive Inc. has so far seen sluggish sales for its new artificial intelligence-powered exercise equipment, billed as the catalyst for a long-promised turnaround. The company's new lineup, called the Cross Training Series, is gaining only modest traction at retail stores across the US eight weeks post-launch, according to managers at dozens of Dick's Sporting Goods and Johnson Fitness & Wellness locations the two main brick-and-mortar sellers for Peloton equipment who spoke to Bloomberg."

"Still, Peloton expects sales to ramp up through the holiday shopping season, according to a person familiar with the matter. It's already running Black Friday promotions, including discounts of as much as $1,500 for a treadmill-and-accessory bundle. To prepare for the expected demand, the company recently increased the volume of its maritime imports compared with previous years, according to data from the trade database ImportGenius."

"Shares of the company briefly fell as much as 2.3% to a session low on Tuesday before rebounding to close at $6.74, up 2.1%. The stock has been down about 23% so far this year. Peloton has been stuck in a multi-year sales slump since pandemic lockdowns ended and people emerged from their homes to resume exercising outdoors and in gyms."

Peloton launched a new AI-powered Cross Training Series that has produced only modest retail traction eight weeks after debut, with managers at Dick's Sporting Goods and Johnson Fitness & Wellness reporting increased showroom interest but limited sales conversion. The company expects a holiday-season ramp and is running Black Friday promotions with discounts up to $1,500 on treadmill bundles while increasing maritime imports to meet anticipated demand. Shares showed intra-day volatility and the stock remains down about 23% year-to-date. Peloton faces a multi-year post-pandemic sales slump, upgraded machines featuring Peloton IQ, and potential headwinds from average equipment price increases of 11%.

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