Peloton Interactive and Lululemon Athletica said Wednesday they’d entered right into a five-year global partnership, sending Peloton’s shares up 17% in aftermarket trading.
Under the deal, Peloton would grow to be the exclusive digital fitness content provider for the apparel maker, developing all content for Lululemon Studio starting early 2024. In return, Lululemon can be the fitness bike maker’s primary athletic-apparel partner.
The fitness platform provider, once a pandemic darling, has taken a series of measures to chop costs. Additionally it is pivoting away from hardware to remodel right into a software-first company.
Pelton, once a pandemic darling, has taken a series of measures to chop costs.AP
In 2021, Peloton sued Lululemon after the athletic apparel maker threatened its own lawsuit over the exercise bike company’s latest apparel line. They settled the dispute last 12 months.
Shares of Peloton’s rival Xponential Fitness pared some gains on the news of the corporate’s cope with Lululemon and were last up 3.6% after the bell.
Lululemon also said it could discontinue selling its Studio Mirror – an interactive “smart fitness” device that features live, on-demand workouts – which has seen lackluster demand in recent months.
Lululemon agreed to be Peloton’s primary athletic-apparel partner.Getty Images
The corporate had said earlier this 12 months it was seeking to digitize its Mirror business further and focus more on offering content through applications.
