Shares of Peloton Interactive Inc. were shooting more than 18% higher in morning trading Wednesday after the company reached an agreement to sell equipment and other products through Amazon.com Inc.
While Peloton PTON, +15.98% has relied on direct-to-consumer sales through its stores and website, the Amazon AMZN, +0.03% move marks a change in strategy as the connected-fitness company looks to broaden its distribution.
“Expanding our distribution channels through Amazon is a natural extension of our business and an organic way to increase access to our brand,” Chief Commercial Officer Kevin Cornils said in a release. “We want to meet consumers where they are, and they are shopping on Amazon.”
The release mentions that various Peloton products will be available in “Amazon’s U.S. stores” and links to Amazon’s website, where equipment is listed.
“Customers can search for the products in Amazon stores to see if they are available for purchase and delivery in their area,” the company said in the release.
At the outset, Peloton will offer its original exercise bike and its Guide strength-training product through Amazon, in addition to accessories like cycling shoes, weights, and water bottles.
Peloton was able to capitalize on a home-fitness frenzy at the start of the pandemic, but the one-time investor darling has struggled more recently to cope with changing customer behaviors. When Peloton reported its last set of quarterly results in May, executives highlighted “softer demand” and challenges with inventory management.
Barry McCarthy, a former Spotify Technology SA executive, took over as the fitness company’s chief executive earlier this year.
Peloton is due to report fiscal fourth-quarter results before Thursday’s opening bell.