Will Peloton experience a second wind? Sales of the New York-based connected exercise bike and treadmill company, which has been struggling on Wall Street especially since the end of the lockdown, are expected to rise more than 14% at the opening this Thursday following the announcement of a partnership with Lululemon, which at Yogis well-known Canadian brand. This five-year agreement will allow Peloton to integrate its courses with the exercise application Mirror and those of Lululemon, which in return will become its main supplier of sporting goods. No financial details have been disclosed at this time.

For Vital Knowledge Analysts: “ It’s nice to see both companies refocusing on their core competencies, even if this partnership doesn’t represent a monumental announcement for either companye. » The Bloomberg Intelligence expert is a little more excited. This agreement ” could provide a boost to Peloton’s user base, especially as Lululemon stops selling Mirror workout products », he states. The Canadian company acquired American startup Mirror for $500 million in the summer of 2020, hoping to strengthen its home yoga and bodybuilding offerings while offering a high-end service. Because Mirror, as the name suggests, was interested in developing large mirrors packed with technology (LCD screen, camera), intended for attending classes accompanied by a trainer. Far from the initial enthusiasm, Mirror’s performance began to decline as life returned to normal, to the point that Lululemon had to take $443 million in write-downs in the fourth quarter of 2022 (2023).

By signing with Peloton, Lululemon will continue to offer content to existing Mirror users and will stop selling physical products by the end of the year. For its part, Peloton is working to expand its user base. However, the path to sustainable profitability and significant free cash flow is still a long one. On Wall Street, the stock is still down 41% since the start of the year. At $4.65, it is also light years away from its record high of $171.09 reached on January 14, 2021.