Peloton shares surge 30% on Lululemon partnership
Lululemon announces 5-year deal with fellow high-end fitness brand Peloton
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Peloton Interactive shares jumped 30% in extended trading Wednesday on the news that the company has entered a five-year partnership with Lululemon.
The high-end fitness brands announced they have reached a "multi-dimensional agreement" through which Peloton will supply all of Lululemon's digital fitness content and, in turn, Lululemon will become the primary apparel provider to Peloton.
A Peloton announced a five-partnership with Lululemon on Wednesday. (Gary Hershorn / File / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PTON | PELOTON INTERACTIVE INC. | 7.58 | -0.17 | -2.19% |
"Our brands create transformational experiences, products, and content that build meaningful connections and unlock greater possibilities for our Members, anytime, anywhere," Peloton Chief Emerging Business Officer Dion Camp Sanders said in a statement.
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"By bringing together the best in fitness content with the best in athletic apparel, we’ll give our communities one-of-a-kind experiences and special content that will inspire them to achieve their goals," Sanders added.
A Lululemon sign is seen at a shopping mall in San Diego on Nov. 23, 2022. (Mike Blake / Reuters Photos)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LULU | LULULEMON ATHLETICA INC. | 309.53 | -10.48 | -3.27% |
Through the deal, Peloton will be selling co-branded apparel from across Lululemon's product lines at its retail stores and online beginning Oct. 11; and starting Nov. 1, Lululemon's Studio All-Access Members will be granted access to thousands of Peloton classes.
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Also starting in November, Lululemon will do away with its digital app-only membership tier, at which point current app-only subscribers will be offered the opportunity to become a Peloton App One Member.
A customer rides her Peloton exercise bike on April 7, 2020, in San Anselmo, California. (Ezra Shaw / Getty Images)
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The broad exposure to Lululemon's customer base appears to be welcome news for Peloton investors as the company has been trying to reverse the decline in demand for its equipment by expanding access to its content with more membership tiers.
FOX Business' Daniella Genovese contributed to this report.