Peloton jacking up prices for original Bike, Tread as inflation accelerates
New delivery and setup fees will bring Bike and Tread costs to $1,745 and $2,845, respectively
Peloton customers will start paying more for the fitness company's original Bike and Tread products at the end of the month.
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Beginning Jan. 31, Peloton will charge a $250 delivery and setup fee for its original Bike and a $350 delivery and setup fee for its original Tread, according to a banner on its website. The delivery and setup fees were previously included with purchase of the machines.
The increases will bring the costs of the machines to $1,745 and $2,845, respectively. Financing options will be available for eligible customers starting as low as $67 per month over 43 months at 0% APR. Additional delivery fees may apply outside of the continental United States.
The price hike comes as inflation accelerated at the fastest pace since 1982 with the consumer price index surging 7% year-over-year in December.
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In August, Peloton reduced the price of its original Bike to $1,495. It also launched a redesigned Tread priced at $2,495 following a voluntary recall of Tread and Tread+ machines due to reports of a child's death and dozens of other injuries.
In November, the company slashed its full-year guidance for 2022 due to a "softer than anticipated" start to the second quarter and "challenged visibility" in its near-term operating performance as a result of uncertainty related to the COVID-19 pandemic.
Peloton is forecasting $4.4 billion to $4.8 billion in total revenue for fiscal year 2022, down from previous guidance of $5.4 billion. The company anticipates Connected Fitness subscriptions will grow to somewhere between 3.35 million and 3.45 million for the full year.
|PTON||PELOTON INTERACTIVE INC.||7.73||+0.45||+6.18%|
|ODFL||OLD DOMINION FREIGHT LINE INC.||317.65||+7.21||+2.32%|
On Jan. 24, Peloton stock will be replaced in the Nasdaq 100 index by Old Dominion Freight Line. Peloton shares have fallen more than 70% in the past six months and are down more than 10% so far in 2022.