Peloton, the fitness powerhouse, and Lululemon, the athleisure giant, are teaming up in a five-year partnership set to redefine the way we work out and dress. This dynamic duo’s collaboration means Peloton’s top-tier fitness content will now be accessible through Lululemon’s exercise app. But that’s not all – Lululemon is about to become Peloton’s go-to brand for athletic wear. Plus, a select group of Peloton instructors will don the ambassador hats for this trendy apparel company.
Steady Rise for Both Fitness Brands
Exciting things await the fitness world as Peloton’s stocks soared by more than 15% during extended trading when news of this partnership hit the scene. Lululemon, with its market cap of roughly $48 billion (compared to Peloton’s $1.7 billion), saw its shares remain steady in after-hours trading.
In an unexpected twist, Lululemon has decided to bid adieu to Mirror, its workout class streaming device, by the end of this year. This move comes after Mirror’s sales fell short of expectations, leading to Lululemon swallowing a significant $443 million impairment charge. While Peloton’s content is set to take over Mirror, the fate of the device itself remains uncertain.
Peloton to Pivot Focus to Content
With Peloton’s connected fitness products gradually losing momentum after the pandemic boom, the company is pivoting towards content as its main selling point. This partnership with Lululemon marks the first time that Peloton is sharing its highly-prized content with another company, except for a smaller alliance with Delta Air Lines that offers meditation and movement classes to travelers.
Peloton Won’t Get Hands on Lululemon Members
Lululemon’s app boasts a staggering 13 million members, nearly double Peloton’s global member count of seven million. However, under the terms of their agreement, Peloton won’t gain access to Lululemon’s content-consuming members.
Perfect TimingThis announcement comes hot on the heels of Peloton’s news that co-founder and Chief Product Officer Tom Cortese is bidding farewell to the company. In May, Peloton’s leadership team discussed rebranding and potential partnerships, with Chief Content Officer Jennifer Cotter suggesting that while nothing is off the table, there’s currently no pressing need for such collaborations.
