Thursday, May 30, 2024
HomeBusinessPeloton stock soars as it enters partnership with Lululemon in major deal.

Peloton stock soars as it enters partnership with Lululemon in major deal.

Peloton shares experienced a significant surge in value after the company revealed a five-year partnership with Lululemon to develop digital fitness content. Under the agreement, Lululemon will become Peloton’s primary athletic apparel provider. This news led to a jump of over 15% in Peloton’s stock during extended trading, while Lululemon’s stock remained flat. As part of the deal, Lululemon will discontinue the sale of its Studio Mirror, a product that enables users to stream workout classes, by the end of the year. However, the company will continue to offer support for existing Mirror equipment.

The partnership announcement comes shortly after Peloton co-founder and Chief Product Officer, Tom Cortese, announced his departure from the company. Peloton has shifted its strategic focus towards subscriptions and deemphasizing its expensive exercise equipment. With Lululemon’s market capitalization around $48 billion, compared to Peloton’s $1.7 billion, this collaboration presents an opportunity for both companies to leverage their strengths. Peloton will benefit from Lululemon’s strong brand and apparel expertise, while Lululemon can tap into Peloton’s extensive user base and digital fitness platform. This partnership is likely to have a significant impact on the future growth and direction of both companies.

As this is a developing story, more updates may follow to provide further details on the collaboration between Peloton and Lululemon. Investors and industry observers will be closely monitoring this partnership and its potential to reshape the digital fitness and athletic apparel markets.

Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments