Adidas AG ADS, -0.65% announced a partnership with fitness company Peloton Interactive Inc. PTON, 0.04% during its investor event. Adidas gave no further detail about the alliance, except to say that more detail would come on March 18. “We’re going to be very specific of what’s coming out,” said Kasper Bo Rørsted, chief executive of Adidas, during the event, according to FactSet. “[I]t’s taken really into the context of our expansion of our training business and our focus also on women.”
Adidas stock has rallied nearly 67% over the past year. Peloton stock is up more than 406% for the period. And the S&P 500 index SPX, 0.18% is up 66.3% for the last 12 months. “At-home fitness is here to stay, with a growing set of operators beginning to capitalize on what has been perceived as solo-Peloton territory, driving its valuation multiples much higher than its revenue growth, leading us to believe in ongoing risk even after the recent share drop,” wrote BMO Capital Markets in a note published last week. “It’s clear established brands and retailers are taking notice and partnering up; we expect multiple beneficiaries to emerge.”