How Lululemon's Peloton Partnership Reframes The MIRROR Setback: Analyst's Take
Portfolio Pulse from Shivani Kumaresan
Lululemon Athletica Inc (LULU) has announced a five-year strategic partnership with Peloton Interactive Inc (PTON). Under the partnership, PTON will become the exclusive digital fitness content provider for LULU, and LULU will become the primary athletic apparel partner to PTON. The partnership is seen as a positive move by Raymond James analyst Rick B. Patel, who believes it will help LULU extract value from its MIRROR acquisition, which it took a $442.7 million impairment for in 4Q22.
September 28, 2023 | 6:45 pm
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POSITIVE IMPACT
The partnership with PTON is expected to increase LULU's distribution and visibility, and allow it to focus more on its core growth engine, apparel.
The partnership with PTON is expected to increase LULU's brand visibility and distribution, and allow it to focus more on its core growth engine, apparel. This could potentially lead to increased sales and revenue for LULU.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
The partnership with LULU is expected to increase PTON's content distribution and visibility.
The partnership with LULU is expected to increase PTON's content distribution and visibility, potentially leading to increased user engagement and revenue.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100