Peloton zooms after striking global deal with yoga wear maker Lululemon

Xponential Fitness

27/09/2023 22:43

Sept 27 (Reuters) - Peloton Interactive  PTON.O  and
Lululemon Athletica  LULU.O  said on Wednesday they had entered
into a five-year global partnership, sending Peloton's shares up
16.7% in aftermarket trading. 
    Under the deal, Peloton would become the exclusive digital
fitness content provider for the apparel maker, developing all
content for Lululemon Studio beginning early 2024. In return,
Lululemon would be the fitness bike maker's primary
athletic-apparel partner.
    The fitness platform provider, once a pandemic darling, has
taken a series of measures to cut costs. It is also pivoting
away from hardware to transform into a software-first company.
    Shares of Peloton's rival Xponential Fitness  XPOF.N  pared
some gains on the news of the company's deal with Lululemon and
were last up 3.6% after the bell.
    Lululemon also said it would discontinue selling its Studio
Mirror - an interactive "smart fitness" device that features
live, on-demand workouts - which has seen lackluster demand in
recent months. 
    The company had said earlier this year it was looking to
digitize its Mirror business further and focus more on offering
content through applications.

 (Reporting by Shivansh Tiwary in Bengaluru; Editing by Pooja
Desai)
 ((Shivansh.Tiwary@thomsonreuters.com; +91 9708363192;))