Peloton loses lawsuit against Lululemon in year of falling sales
The exercise bike maker's case was dismissed by the courts

A Manhattan judge dismissed Peloton Interactive Inc’s year-long lawsuit against sports fashion brand Lululemon on Thursday.
Peloton launched the legal case last November, after Lululemon accused the company of infringing on its clothing patents for its best-selling bra and legging products.
The fashion brand sent a cease-and-desist letter, to which Peloton responded with a lawsuit, seeking a declaration that it had not violated any trademarks. Days later, Lululemon also sued Peloton.
Peloton's lawsuit has now been dismissed, meaning that Lululemon’s case will resume.
In the federal court on Thursday, the judge described Peloton's lawsuit as “an anticipatory action that warrants dismissal”, reported Bloomberg.
Peloton declined to comment on the ruling.
This litigation setback comes in what has been a turbulent year for the exercise bike maker. Back in February, Peloton’s chair and co-founder John Foley resigned from his role in a shift that also saw 2,800 of the company’s employees made redundant.
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
Less than a month ago, the company reported a $1.2 billion loss, sending share prices plummeting as it recorded its sixth consecutive quarter of losses.
Peloton’s stock price grew substantially during the pandemic as consumers turned to home fitness options. However, in the quarter ending 30 June 2022, Peloton reported a 28% fall in revenue, with sales falling to $678.8 million compared with $936.9 million the previous year.
In a statement to shareholders at the time, CEO Barry McCarthy said: “The naysayers will look at our [fourth quarter] financial performance and see a melting pot of declining revenue, negative gross margin, and deeper operating losses. They will say these threaten the viability of the business. But what I see is significant progress driving our comeback and Peloton’s long-term resilience.”
Last month, the company launched a desperate bid to restructure its distribution channels, selling products through Amazon US for the first time. It has now struck a deal with American retailer Dick’s Sporting Goods and will begin selling exercise bikes, treadmills and its range of accessories in stores across the country.
Further information on the legal cases can be found at Lululemon Athletica Canada Inc v Peloton Interactive Inc, U.S. District Court, Central District of California, No. 21-09252; and Peloton Interactive Inc v Lululemon Athletica Canada Inc, U.S. District Court, Southern District of New York, No. 21-10071.
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Tom joined Cycling Weekly as a news and features writer in the summer of 2022, having previously contributed as a freelancer. He is fluent in French and Spanish, and holds a master's degree in International Journalism, which he passed with distinction. Since 2020, he has been the host of The TT Podcast, offering race analysis and rider interviews.
An enthusiastic cyclist himself, Tom likes it most when the road goes uphill, and actively seeks out double-figure gradients on his rides. His best result is 28th in a hill-climb competition, albeit out of 40 entrants.
-
Fara F/Gravel Bike review: comfortable, versatile, with a good turn of speed
A rugged, trail-ready carbon gravel bike that can be as adventurous as you want it to be
By Hannah Bussey Published
-
Car drives towards peloton leading to pile-up in French stage race
Pre-race favourite Maxim van Gils taken to hospital after crash at Étoile de Bessèges
By Tom Davidson Published