Peloton skyrockets as it partners with Lululemon, a global yoga wear brand (Reuters, 13 words)

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Peloton Interactive and Lululemon Athletica announced a five-year global partnership that caused Peloton’s shares to surge by 16.7% in aftermarket trading. The deal entails Peloton becoming the exclusive digital fitness content provider for Lululemon Studio starting in early 2024 while Lululemon becomes Peloton’s primary athletic-apparel partner. In an effort to cut costs, Peloton has been transitioning from hardware to prioritize becoming a software-first company. The news impacted Peloton’s competitor, Xponential Fitness, as its shares partially receded after the announcement.

Furthermore, Lululemon revealed its decision to discontinue the sale of its Studio Mirror, an interactive device offering live and on-demand workouts. Due to lackluster demand, the company plans to enhance the digitization of its Mirror business and focus more on providing content through applications. This strategic move aligns with Lululemon’s goal of optimizing its offerings in the digital realm.

Overall, Peloton’s partnership with Lululemon marks a significant step for both companies. Peloton solidifies its presence as a key player in the digital fitness content space, while Lululemon streamlines its business and enhances its digital capabilities. This collaborative effort has positive implications for their respective markets and reflects the shifting landscape of the fitness industry.

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