Lululemon and Peloton have announced a five-year strategic global partnership which will see Peloton become the exclusive digital fitness content provider for Lululemon, and Lululemon the primary athletic apparel partner to Peloton.

With the aim of “engaging their respective global community of members in the United States, Canada, the United Kingdom, Germany and Australia,” the partnership will give consumers technical athletic apparel, special programming, and original content. 

“Two companies share a vision to advance wellbeing through movement,” says Lululemon President, Americas and Global Guest Innovation

As of Oct. 11, 2023, co-branded apparel across Lululemon’s product lines will be available for purchase at Peloton retail stores and online in the U.S., U.K., and Canada, rolling out to all five of Peloton’s global markets by March 2024.

From Nov. 1, 2023, Lululemon Studio All-Access Members will have access to thousands of Peloton classes for the same price they pay today. Studio content will be produced by Lululemon until the Spring of next year, after which time Peloton will become the exclusive provider of digital fitness content to Lululemon Studio Members. Peloton content will be updated on a weekly basis on the Studio device and companion app.

Lululemon’s Mirror to go

Also included in the announcement was the decision by Lululemon to discontinue selling the Lululemon Studio Mirror hardwear and digital app-only membership tier before the end of the year. Lululemon will continue to provide ongoing service and support for Mirror devices. Lululemon Studio app-only members will be offered an opportunity to become a Peloton App One Member.

Lululemon has reportedly been trying to sell its Mirror business, which it acquired for $500 million in 2020, since April 2023 but has previously struggled to find a buyer.

Despite this, Lululemon reported a strong quarter of results for the period ended June 30 and raised its FY forecast to 17 to 18 percent revenue expansion to a range of $9.51 to $9.57 billion.

Although Peloton CEO Barry McCarthy has been implementing new initiatives, an app relaunch and deals aimed at sales and profitability growth, costs associated with a bike seat recall and a separate legal settlement have detracted from Peloton Interactive’s financial recovery. Peloton reported a net loss of $241.8 million against a loss of $1,255.3 million in Q4 ended June 30, as total revenues fell by 5 percent to $642.1 million, below forecasts, from $678.1 million in the year-ago period. 

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