Once rivals, now partners: Peloton and Lululemon to collaborate on connected fitness and apparel

Peloton and athletic wear maker Lululemon have announced a five-year partnership, effectively closing the curtain on Lululemon's recently acquired connected fitness device, Mirror.

People view a ransacked Lululemon store in Philadelphia, Wednesday, Sept. 27, 2023. (AP)

Peloton and athletic wear maker Lululemon have announced a five-year partnership, effectively closing the curtain on Lululemon's recently acquired connected fitness device, Mirror.

The interactive fitness company steps in to become the exclusive digital fitness content provider for Lululemon, which in turn becomes the primary athletic apparel partner to New York-based Peloton.

Vancouver, British Columbia-based Lululemon, known in its early days for mostly making yoga gear, broadened its athletic apparel offerings and then bought at-home exercise startup Mirror for marketing missteps to recalls. This spring, the company announced a significant rebrand, shedding its identity as a seller of luxury exercise bikes and equipment while shifting toward an image of a more inclusive health technology company.

Peloton shares rose about 2% Wednesday morning after jumping as much as 15% in off-hours trading after the partnership was announced late Wednesday. Trading at less than $5 per share early Thursday, they have lost about three-quarters of their value from 2023 highs of close to $18 in February. Shares peaked at around $171 each in early 2021.

Shares of Lululemon ticked down less than a quarter of one percent, to $378.30 in morning trading.