Shares of Peloton Interactive jumped 16% after the company teased a rowing machine and new features at its annual “Homecoming” event. The move did little to counter months of declines for the stay-at-home darling.
Peloton (ticker: PTON) stock rose 17% to $15.87, its best day since Feb. 8, according to Dow Jones Market Data. The stock is still off 90% from its record close of $167.42 on Jan. 13, 2021, and 56% year to date.
Peloton didn’t explicitly confirm its plans to sell its own branded rowing machine. Instead, the firm simply said it is “bringing its best-in-class fitness experience to the world of rowing!” The company added that it would add rowing workouts to its content arsenal and “grow its connected fitness portfolio.”
A brief teaser video did show a Peloton instructor working out on a Peloton-branded rowing machine, which faded to the words “coming soon.” Peloton declined to comment beyond its announcement.
A rowing machine has been a long-rumored addition to Peloton’s bike and treadmill offerings, but the homecoming event comes at a tumultuous time for the firm. Barry McCarthy—who took over as CEO in February as the company announced job cuts-,said Tuesday that Peloton has been working to reduce excess inventory.
“That inventory has consumed an enormous amount of cash, more than we expected, which has caused us to rethink our capital structure,” McCarthy said.
Aside from the entry into rowing, Peloton said it is adding new programming and an option to invite friends to schedule workouts. Users will also be able to track outdoor running, cycling, and walking workouts to integrate into the Peloton app.
It’s unlikely the announcements Friday will win back Wall Street any time soon.
Write to Connor Smith at [email protected]
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