Peloton Interactive has announced a significant partnership with Lululemon Athletica, resulting in a surge of double-digit growth for the stationary bike manufacturer.
Exclusive Provider of Digital Fitness Content
Under this collaboration, Peloton (ticker: PTON) will exclusively provide Lululemon (LULU) with its digital fitness content. In return, Lululemon will become Peloton’s primary apparel partner. As part of this transition, Lululemon will cease the sale of its Studio Mirror exercise screen by the end of the year. Furthermore, the clothing brand plans to discontinue its digital app-only membership tier on November 1st.
Apparel Availability and Access to Peloton Classes
Starting from October 11th, customers will be able to purchase Lululemon apparel from Peloton’s brick-and-mortar stores and online platforms. Additionally, Lululemon’s Studio-All Access Members will gain access to thousands of Peloton classes at their current price, beginning November 1st.
Future Developments
Peloton and Lululemon plan to collaborate further, with Peloton taking on the development of all content for the newly introduced Lululemon Studio. This change in direction comes after Mirror’s subscription program was replaced by Lululemon Studio in September 2022.
Lululemon and Peloton Announce Powerful Partnership
“As a leader in technical athletic apparel, this partnership will create a powerful product offering for Peloton Members and fans,” said Celeste Burgoyne, President of Global Guest Innovation at Lululemon. The collaboration between these two industry giants aims to advance wellbeing through movement and provide Lululemon Studio Members with access to the most expansive and dynamic offering of fitness content imaginable.
Peloton’s Shares on the Rise
Peloton’s shares saw a significant surge of 13%, reaching $5.27 following this groundbreaking partnership. Meanwhile, Lululemon’s stock experienced a slight increase of 0.8% and settled at $381.98.
A Strategic Move for Peloton
Peloton’s decision to team up with Lululemon comes as no surprise. By joining forces, Peloton not only eliminates one of its most direct competitors but also stands to profit from the sale of its exclusive branded line with Lululemon.
Lululemon’s Prior Acquisition
In 2020, Lululemon acquired Mirror, a direct competitor to Peloton, for an impressive $500 million. However, as the fitness industry pivots towards reopening studios and gyms, Lululemon has been working to wind down its operations in this space.
As stated in their latest annual filing with the Securities and Exchange Commission, “As concerns with the COVID-19 pandemic have subsided, the connected fitness industry has experienced challenging market conditions, and as a result, we have seen weakening demand for our in-home fitness hardware.”
This strategic partnership between Lululemon and Peloton not only marks a significant milestone for both companies but also promises an exciting future for their respective members and fans.
Lululemon Commits to Continued Support for Mirror Devices
Lululemon, the renowned fitness apparel company, has announced its unwavering dedication to serving and assisting Mirror device owners, even after the hardware is no longer available for purchase.
The commitment comes as a reassurance to Mirror users who rely on the interactive home fitness system to enhance their workout routines. Lululemon’s pledge ensures that existing Mirror customers can continue enjoying seamless service and ongoing support.
While Lululemon plans to cease the sale of Mirror devices, the company’s focus on customer satisfaction remains paramount. By continuing to provide assistance and guidance, Lululemon aims to uphold its commitment to fostering an exceptional home workout experience for Mirror owners.
