Exercise shocker: Lululemon and Peloton enter broad strategic partnership
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Lululemon (NASDAQ:LULU) and Peloton (NASDAQ:PTON) announced on Wednesday that the companies inked a five-year strategic global partnership. The deal could change the exercise equipment and services landscape dramatically.
The partnership will see Peloton (PTON) become the exclusive digital fitness content provider for lululemon (LULU), while Lululemon will become the primary athletic apparel partner to Peloton.
The brands plan to engage their global community of members in the United States, Canada, the United Kingdom, Germany and Australia through technical athletic apparel, real life experiences, special programming, and original content, expanding the brand awareness and reach for both companies. In addition, a select number of Peloton Instructors will become lululemon Ambassadors as part of the partnership.
"Our brands create transformational experiences, products, and content that build meaningful connections and unlock greater possibilities for our Members, anytime, anywhere," stated Peloton Chief Emerging Business Officer Dion Camp Sanders on the partnership.
Beginning October 11, co-branded apparel across lululemonâs (LULU) product lines will be available for purchase at Peloton retail stores and online in the U.S., UK, and Canada. The co-branded apparel will be launched over the course of three new events that will be added to Pelotonâs already scheduled Peloton on Tour, starting with an activation in Chicago on October 5-7.
Starting on November 1, lululemon Studio All-Access Members will have access to thousands of Peloton classes for the same price they pay today, as Peloton becomes the exclusive provider of digital fitness content to lululemon Studio Members. Peloton content will be updated on a weekly basis on the Studio device and companion app, with new Studio content produced by lululemon through Spring of next year. In addition, exclusive Peloton content will be available to people who sign up for lululemonâs free Essential membership program, which currently has more than 13 million Members.
Looking ahead, Lululemon (LULU) intends to discontinue selling the lululemon Studio Mirror before the end of the year and will continue to provide ongoing service and support for Mirror devices. Lululemon (LULU) will also discontinue its digital app-only membership tier on November 1, and current lululemon Studio app-only members will be offered an opportunity to become a Peloton App One Member.
Shares of Peloton (PTON) soared 27.5% in after-hours trading on Thursday. Lululemon (LULU) traded flat at $379.30.

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