Peloton and Lululemon announce five-year partnership, discontinuation of Studio Mirror
Investing.com | Editor Pollock Mondal
Published Sep 28, 2023 04:20AM ET
In a move that underscores the changing dynamics of the fitness industry, connected-exercise-bike maker Peloton Interactive (NASDAQ:PTON) and yoga-wear giant Lululemon Athletica (NASDAQ:LULU) announced a five-year partnership on Wednesday. The collaboration is a strategic response to shifts in the market brought about by the pandemic.
As part of the deal, Lululemon will discontinue its Studio Mirror, a product that directly competes with Peloton's equipment-video offering. This decision comes despite Peloton’s recent recall issues and leadership changes. Lululemon had acquired Mirror in 2020, but now it will serve as Peloton's primary athletic-apparel partner.
The announcement of this partnership spurred after-hours stock growth for both companies. Furthermore, Lululemon has seen consistent stock growth and even raised its full-year outlook.
From October 11, the two companies will launch co-branded clothing as part of their partnership. Celeste Burgoyne, Lululemon’s president for the Americas and global guest innovation, expressed her excitement about the collaboration, saying it highlights shared visions to advance wellbeing through movement.
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