Peloton appoints Apple Fitness+ co-founder, now Ford executive, as its next CEO

NEW YORK (AP) - Peloton has appointed its next CEO. Peter Stern, co-founder of Apple Fitness+ and a current Ford executive, will soon helm of the tech-fitness company.

Stern takes over as president and CEO on January 1, Peloton said Thursday. Karen Boone, one of two current interim CEOs, will continue to serve as chief executive through the end of the year, the company said.

Shares for the New York company climbed more than 20% Thursday.

Thursday’s announcement arrives nearly six months after Barry McCarthy stepped down as Peloton's chief executive. His departure in May came alongside larger restructuring and cost-cutting efforts at the company, which included the layoffs of hundreds of employees.

Sales of Peloton bikes soared during the early days of COVID-19, when many consumers turned to at-home workouts, but that all slowed as pandemic restrictions eased. As a result, the company has reported losses in more recent years.

Peloton also reported Thursday that it lost $900,000 during its first quarter on revenue of $586 million. Both were better than Wall Street had expected.

In efforts to turn things around, Peloton has been working on rebranding itself for some time - shifting its identity as a seller of luxury exercise bikes and equipment to health technology for all. The company recently unveiled plans to sell its deluxe stationary bike at a discount at Costco this holiday season. And back in 2022, Peloton made its exercise bikes and other gear available on Amazon in the U.S.

In a statement Thursday, Stern called working for Peloton "a dream come true” - adding that he is grateful for the opportunity “to take Peloton and its Members to even greater heights."

According to the company, Stern himself has been a Peloton member since 2016. He currently serves as president of Ford Integrated Services - and previously also held leadership roles at Time Warner Cable and Apple, where he co-founded Apple Fitness+.

In connection with this week’s announcement, Chris Bruzzo, who has been serving as Peloton’s co-interim CEO alongside Boone, will step down on Friday. But both Bruzzo and Boone will remain members of Peloton’s board. Stern is also expected to get a seat on the board.