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Jen Van Santvoord rides her Peloton exercise bike at her home in San Anselmo, California.
Ezra Shaw | Getty Images
Peloton shares spiked Wednesday after the company announced a five-year partnership to develop digital fitness content for Lululemon.
As part of the agreement, Lululemon will become Peloton’s primary athletic apparel provider.
Peloton’s stock jumped more than 15% in extended trading. Shares of Lululemon — which has a roughly $48 billion market cap compared to Peloton’s $1.7 billion — were flat in after-hours trading.
Lululemon said it will stop selling the Studio Mirror, which allows users to stream workout classes, by the end of the year. It will still offer service and support for existing Mirror equipment.
The news comes a day after Peloton announced co-founder and Chief Product Officer Tom Cortese is leaving the company. Peloton has shifted its strategy to focus more on subscriptions and less on its pricey exercise equipment.
This is breaking news. Please check back for updates.
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