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- Peloton is getting ready to make tens of millions of stationary bikes in the US.
- CEO John Foley said the company strives to be the “global dominant fitness experience business.”
- The company surpassed $1 billion in revenue for the first time in the second fiscal quarter of 2021.
- Visit the Business section of Insider for more stories.
Peloton has plans to dominate the at-home fitness industry, according to CEO John Foley.
The executive said Peloton’s planned acquisition of fitness manufacturer Precor will allow the firm to ramp up production across the US.
“As we invest in US manufacturing and getting ready to make millions, going to tens of millions, of treadmills and bikes in the US…we can have in-location manufacturing plants,” Foley said during Peloton’s Thursday earnings call, which he said will help avoid delivery delays related to port congestion and shipping.
Foley and other Peloton executives said Precor, which makes equipment for health clubs and hotels, would allow the firm to ramp up US manufacturing. The $420 million purchase of Precor represented Peloton’s largest acquisition.
“As we become the global dominant fitness experience business, we want Asian manufacturing, we want US manufacturing, and it creates optionality for us to service different markets from different points of entry. So we’re very excited about Precor and what that team represents to our supply chain globally,” Foley added.
The company surpassed $1 billion in revenue for the first time in the second fiscal quarter of 2021. Membership for its $39-per-month Connected Fitness plan grew 134% compared to the same time last year.
As sales surged, customers reported waiting months for delayed deliveries and experiencing last-minute cancellations. Some customers told Insider's Madeline Stone Peloton's customer service offered limited help.
Peloton blamed slow deliveries to pandemic-related changes to shipping, and congestion in US ports as e-commerce booms. The company said it plans to invest $100 million to expedite the movement of bikes globally.
The coronavirus pandemic fueled a spike in demand for at-home fitness products as many gyms closed or limited capacity over the last year.
Peloton isn't the only at-home stationary bike company looking to capitalize on increased demand. Echelon Fitness sales increased a whopping 700% year-over-year in September. Echelon calls itself the "most formidable competitor of Peloton" by selling cheaper and more readily available stationary bikes, CEO Lou Lentine said in an interview with Insider's Bethany Biron.