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: Adidas x Peloton apparel line launches

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The Adidas x Peloton clothing line is now available, part of a broader partnership between the two fitness companies.

Designed in collaboration with Peloton Interactive Inc.
PTON,
-0.95%

instructors Ally Love, Cody Rigsby and Robin Arzón, the collection includes gender-neutral hoodies, sweatshirts and joggers, tees and running gear.

Adidas AG
ADS,
-5.85%

teased the partnership during its recent investor event, but offered few details.

Since then, the companies have launched on-demand classes on the Peloton app and on Peloton bikes. And exclusive content has been made available to members of Adidas’ Creators Club.

Read: Nike highlights Jordan brand with women’s business up nearly triple digits in fiscal Q3

Also: H&M, Nike, other clothing brands boycotted in China over Xinjiang sanctions

“We believe apparel is attractive for Peloton, especially in terms of marketing and allowing consumers to show brand affinity,” wrote KeyBanc Capital Markets in a note following the initial announcement of the partnership.

“We see this partnership as slightly larger than previous collaborations, and the partnership should allow Peloton to get apparel cadence back into a better place. We think apparel/accessories are an untapped opportunity for Peloton and think that this could present an incremental gross profit dollar opportunity.”

KeyBanc rates Peloton stock overweight with a $185 price target.

Cowen rates Adidas stock as outperform with a €325 price target.

“The brand has gained significantly in the eyes of Gen Z and millennial consumers in North America but sales growth decelerated as segmentation of product was less consistent and supply chain issues arose on more difficult multi-year comparisons in North America, Western Europe and China,” analysts wrote in a note following the investor event.

“CEO Kasper Rorsted now has his moment to reset the narrative and reignite post pandemic growth.”

Adidas stock slumped 6% in Thursday trading, but has gained 24.3% over the past year. The benchmark S&P 500 index
SPX,
-0.53%

has gained 56% for the last 12 months.

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