Is Peloton's Apparel Line a Serious Move or a Warning Signal to Lululemon?
In early September, Peloton Interactive (NASDAQ: PTON) announced the launch of its private-label apparel brand, Peloton Apparel. The exercise equipment maker's expansion into the clothing sphere raised some eyebrows. The company first began selling apparel in 2014 due to demand from its customers. What's new is that the majority of the collection will now feature items from Peloton's private label.
Why now? The move could partly be in response to sports apparel company Lululemon's (NASDAQ: LULU) encroachment into Peloton's arena with its acquisition of in-home exercise company Mirror. Peloton could be sending a signal to Lululemon, intending to get the apparel maker to perhaps slow its growth plans for Mirror. Let's take a closer look at this potential, new rivalry.
Image source: Getty Images.
Source Fool.com
