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Wednesday, April 17, 2024
HomeFinance NewsPeloton's stock surges due to new Lululemon partnership

Peloton’s stock surges due to new Lululemon partnership

Peloton and Lululemon have announced a five-year strategic partnership that will see Peloton developing digital fitness content for Lululemon’s exercise app. In return, Lululemon will become Peloton’s primary provider of athletic apparel. As part of the partnership, Lululemon plans to discontinue sales of its Studio Mirror product by the end of the year. The fate of the Mirror product, whether it will be sold off or not, remains uncertain.

This partnership is a significant move for both companies. Peloton, known for its connected exercise equipment and digital fitness content, will now have access to a larger audience through Lululemon’s exercise app. Lululemon, on the other hand, will benefit from Peloton’s popularity and will have its instructors serve as ambassadors for the brand. This collaboration indicates a shift in strategy for Peloton, as it focuses more on its app and content rather than its expensive exercise equipment.

The discontinuation of Lululemon’s Studio Mirror product suggests that the company experienced below-expectation sales in its hardware division. Lululemon had been exploring a sale of the product and even approached competitor Hydrow as a potential buyer. The partnership with Peloton may have influenced Lululemon’s decision to discontinue the product.

Overall, this partnership between Peloton and Lululemon has the potential to benefit both companies by expanding their offerings and reaching a wider customer base.

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