Peloton has been struggling for paying subscribers and its apparel ambitions need a lift, while Lululemon's prior bet to crack the exercise market was still dragging on its bottom line.
Why it matters:
Peloton needed more paying subscribers, while its apparel ambitions needed refinement. On the other side, Lululemon's prior bet to crack the exercise market was still dragging on its bottom line.Subscribers to the $39-per-month Lululemon Studio All-Access will now get access to Peloton classes. Peloton will begin selling co-branded Lululemon products, and some of its instructors will promote Lululemon clothing.the deal allows Lululemon to close the book on its failed 2020 acquisition of Mirror. The company spent $500 million on the at-home fitness company, hoping at the time to tap into the pandemic-fueled craze in the space.
The company is hoping to convert many of the Lululemon Studio Mirror subscribers — UBS analyst Arpine Kocharyan estimates there are about 250,000 — to its own product.Although the partnership seems like perfect match from a branding perspective — both brands target higher-income consumers — the companies believe there's little overlap between their customers.
"We believe the deal is an acknowledgement of the challenges LULU has faced growing its hardware business and the company's limited ability to develop content, and Peloton's need to simplify its business through more effective partnerships for athletic apparel," Kocharyan said Thursday in a research note.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Peloton stock surges on 5-year content, apparel deal with LululemonPeloton will partner with Lululemon on branded exercise apparel and connected fitness content.
Read more »
Once rivals, now partners: Peloton and Lululemon to collaborate on connected fitness and apparelInteractive fitness company Peloton and athletic wear maker Lululemon have announced a five-year partnership, effectively closing the curtain on Lululemon’s recently acquired connected fitness device, Mirror.
Read more »
Peloton and Lululemon finally unlock a multi-million dollar opportunityThe fitness brands will put aside their differences in a strategic partnership many enthusiasts have been waiting for.
Read more »
After fighting over connected fitness, Peloton and Lululemon join forcesThe new partnership will combine digital fitness with workout and athleisure gear starting next month.
Read more »
Peloton shares surge 30% on Lululemon partnershipPeloton shares soared 30% in extended trading Wednesday after the company announced a five-year partnership with fellow high-end fitness brand Lululemon.
Read more »
Peloton shares soar after inking apparel, content deal with rival LululemonLululemon also said it would discontinue selling its Studio Mirror – an interactive “smart fitness” device that features live, on-demand workouts – which has seen lackluster…
Read more »