Benzinga | Mar 18, 2021 05:18AM EDT

Peloton Partners With Adidas To Create New Apparel Line: What You Need To Know

Adidas AG (OTC:ADDYY) has formed a partnership with fitness company Peloton Interactive Inc. (NASDAQ:PTON) to create an exclusive apparel line.

What Happened: Adidas said that its partnership with Peloton will begin with the "adidas x Peloton SS21" collection, a line of performance wear and lifestyle pieces. The collection was made in collaboration with Peloton's cycling instructors Ally Love, Robin Arzon and Cody Rigsby.

The merchandise includes sizes ranging from XS to 2X, and designs spanning men's, women's, and unisex styles.

The 11-piece collection includes tanks, tights, shorts, hoodies, tees, crewnecks, sports bras, and joggers, retailing between $30 and $85. It will be available starting March 25 on the two companies' websites as well as in select Adidas and Peloton retail stores.

Peloton will hold a series of on-demand classes, available on the Peloton Bike, Bike+ and the Peloton App beginning Thursday, as well as a live class celebrating the collection drop on March 25.

See Also: What's Happening With PTON Stock And PLTR Stock Wednesday?

Why It Matters: Peloton already sells apparel and accessories made by Nike Inc. (NYSE:NKE) and Lululemon Athletica Inc. (NASDAQ:LULU) on its website. The new partnership with Adidas is expected to enable Peloton to continue to attract more subscribers to its app-based membership.

Peloton's $420 million acquisition of fitness equipment maker Precor in December last year is expected to help it build new U.S. manufacturing for this year's holiday season and also establish a presence in new commercial markets.

However, Peloton faces increased competition from Apple Inc. (NASDAQ:AAPL) Fitness+ service that is expected to leave it trailing in subscriptions, according to Loup Ventures analyst Gene Munster.

Price Action: Peloton shares closed about 0.2% lower on Wednesday at $107.79, while Adidas closed 0.3% higher at $172.09.

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Photo: Courtesy of Peloton