Peloton Shares Rise , Following Partnership With Lululemon.
Peloton Shares Rise , Following Partnership With Lululemon.
The former foes are teaming up, CNN reports.
The five-year "strategic global partnership" will see Lululemon abandon its Mirror fitness hardware.
While Peloton will stop producing private-label fitness clothing.
Starting next month, Lululemon will manufacture Peloton-branded clothing, which will be available for purchase beginning Oct.
11.
The company will also stop producing fitness classes.
Instead, Peloton's fitness classes can be streamed via the "Lululemon Studio" app.
The companies reportedly came to the realization that "dabbling in areas outside of their core competencies was not yielding results," according to GlobalData retail analyst Neil Saunders.
The companies reportedly came to the realization that "dabbling in areas outside of their core competencies was not yielding results," according to GlobalData retail analyst Neil Saunders.
Peloton’s push into apparel was a failure as the selection was weak and looked incredibly lackluster in stores.
The company was not doing sufficient volume to justify the operation.
, GlobalData retail analyst Neil Saunders, via CNN.
Lululemon’s Mirror device was a flop because it was too expensive and too complex, GlobalData retail analyst Neil Saunders, via CNN.
Peloton's chief emerging business officer also issued 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, Dion Camp Sanders, Peloton’s chief emerging business officer, via press release
