- Peloton and Lululemon announced a five-year strategic partnership.
- Peloton will develop digital fitness content for Lululemon, while Lululemon will become Peloton’s primary activewear provider.
Jen Van Santvoord rides her Peloton exercise bike at her home in San Anselmo, California.
Ezra Shaw | Getty Images
Peloton shares soared on Wednesday after the company announced a five-year partnership to develop digital fitness content for Lululemon.
Under the deal, Lululemon will become Peloton’s primary activewear provider.
Peloton shares rose more than 15% in extended trading. Shares of Lululemon — which has a market capitalization of about $48 billion, compared to Peloton’s $1.7 billion — were flat in after-hours trading.
Lululemon said it would stop selling Studio Mirror, which allows users to stream workout classes, by the end of the year. Service and support for existing mirror devices will continue to be offered.
The news comes a day after Peloton announced that co-founder and chief product officer Tom Cortese is leaving the company. Peloton has changed its strategy and is focusing more on subscriptions and less on its expensive workout equipment.
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