Peloton, one of the most popular connected fitness brands, and athleisure giant, lululemon, announced in September a five-year strategic partnership. Now, last week’s earning call revealed that lululemon is paying Peloton roughly $10 million so that current Mirror owners can access Peloton’s library of digital classes.
A refresher
On September 27, lululemon and Peloton signed a five-year strategic global partnership to “bring together the best in fitness content and athletic apparel to inspire a combined community of more than 20 million Members and guests,” according to the press release. To be sure, Peloton has seen a decline in popularity since the at-home fitness pandemic boom in 2020, and partnering with lululemon makes a lot of sense for the brand.
Since the announcement, there has been a flurry of happenings surrounding the partnership. Early in October, we saw the debut of a lululemon x Peloton apparel collection in Chicago, which highlighted workout clothes and accessories – ranging from leggings to backpacks – with Peloton branding. Then, we learned that lululemon would be canceling Mirror sales, lululemon’s at-home personalized connected fitness experience. For people who already owned a Mirror prior to the cancellation of hardware sales, a transition from lululemon’s Studio All-Access to Peloton’s digital content was in the works for its members, and has been made available as of November 1.
Lululemon paying Peloton millions
As reported by Pelo Buddy, last week’s Q1 2024 earning call revealed that lululemon will be paying Peloton about $10 million in Q2 for their digital fitness content on the Mirror, which is exactly the kind of thing that should be happening per the recently announced partnership. Part of the collaboration between lululemon and Peloton includes “a revenue sharing benefit,” which will result in Peloton paying “millions of dollars to obtain access to Peloton classes for Mirror owners,” (via Pelo Buddy).
On the earnings call, Peloton’s CFO, Liz Coddington, said:
The one thing I can add on lululemon is that we just started having our content available for the lululemon Studio members who have a mirror that actually went live yesterday on November 1. And so, as far as receiving the revenue sharing benefit from that agreement that we have with lululemon, that started effective in November. And we expect, roughly to give you a sense of the size for the quarter, roughly about $10 million of revenue for Q2 coming from that subscription revenue for us.
More on the Peloton and lululemon partnership:
- lululemon x Peloton apparel collaboration debuts in Chicago
- lululemon scratches Mirror sales – here’s what that means if you have one
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