Peloton Shares Surge Following Partnership Announcement with Lululemon
Peloton shares experienced a significant surge on Wednesday after the company announced a five-year partnership with Lululemon to develop digital fitness content.
As part of this partnership, Lululemon will become Peloton’s primary provider of athletic apparel.
In response to this news, Peloton’s stock experienced a surge of more than 15% in after-hours trading. In contrast, Lululemon’s shares remained unchanged during the same trading period, as the company boasts a market capitalization of approximately $48 billion compared to Peloton’s $1.7 billion.
Lululemon also announced its decision to discontinue the sale of the Studio Mirror, a device that enables users to stream workout classes. However, the company will continue to offer support and services for existing Mirror equipment.
This announcement comes on the heels of Peloton co-founder and Chief Product Officer Tom Cortese’s departure from the company. Peloton has shifted its strategy to place greater emphasis on subscription services rather than its expensive exercise equipment.
Please note that this is breaking news. Stay tuned for updates.
