It’s a coup for Mirror and its chief executive, Brynn Putnam, a former New York City Ballet dancer who introduced the product in 2018 and has raised $72 million from investors. Last week, athletic apparel company Lululemon Athletica announced it would be buying the interactive home gym, Mirror, for a cool $500 million. Mirror, which is based in New York, expects to bring in over $100 million in revenue this year and either break even or be slightly profitable in 2021, Mr. McDonald said. I’ve got my Mirror—how do I take classes? Find real-time motivation and thousands of ways to sweat with MIRROR, from weight training … Lululemon’s net sales dropped 17 percent this past quarter, although its online sales increased 70 percent. 0. 1. The Mirror purchase transforms Lululemon from a traditional retailer into a subscription-based firm with strong recurring revenues. (A key part of Lululemon’s marketing strategy has long been to team up with people like athletes and yogis to promote its brand.). While the relationship between Lululemon and Mirror has formally been in place since last year, it’s unclear when exactly the conversation about a sale began (both companies declined to talk to Marker about the deal). Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. Classes like meditation that are taught by Lululemon’s “global ambassadors” are already available on the Mirror platform. Does Mirror Acquisition Make Lululemon Stock a Buy Again? Its classes include Pilates, barre, kickboxing and strength training. Theoretically, the $500 million purchase of Mirror will allow Lululemon to leverage cross-sell opportunities and create a brand new revenue stream. Lululemon, the purveyor of expensive athleisure and activewear, is betting on the future of personalized remote exercise as a way to reach customers by acquiring Mirror, a home fitness start-up that sells a $1,495 wall-mounted machine for streaming workout classes. The Mirror deal fits in with Lululemon’s expansion into experiences, and continues the company’s long-time marketing playbook that promotes the brand by giving product to “global ambassadors” — usually local athletes and yoga instructors. . Matt McCall and the InvestorPlace Research Staff 7/2/2020 U.S. must reverse Trump course, make human rights central - HRW The company recently reported that its net sales for the quarter that ended May 3 tumbled 17 percent to $652 million, but in that period, its direct-to-consumer sales jumped nearly 70 percent. 1. The two companies began a relationship in mid-2019 when Lululemon presented Mirror with an initial investment, which included a content partnership and classes offered by Lululemon’s Global Ambassador Program. Lululemon to Buy Mirror. See also: Lululemon’s new Vancouver headquarters continues to move forward; Microsoft Store to close all of its brick-and-mortar retail locations; Lululemon quietly shutters … Skip Navigation. With gyms and fitness clubs closed due to the COVID-19 pandemic, shut-in Americans have increased purchases of home-workout equipment, boosting sales of companies such as Peloton Interactive Inc. … The acquisition, expected to close during this quarter, will be paid in cash, with $50 million held back and paid out over two years, the company said. John covers consumer goods and technology companies for Fool.com. Mirror will operate as a standalone company within Lululemon and retain its chief executive following … The pandemic brought with it a reckoning for retailers — forcing shops to close their in-person locations for months and leading to widespread unemployment. 55 in the 2020 Digital Commerce 360 Top 1000, agreed to buy Mirror, a maker of in-home fitness equipment, for $500 million, broadening a partnership that began last year as exercise increasingly moves away from traditional gyms. Buzzy exercise startup Mirror agreed to sell to Lululemon, the yoga clothing brand, for $500 million today. “The versatility of the platform completely aligns with how we view the versatility of our product,” he said. Gyms and fitness studios are largely closed, and many customers are nervous to return to those that have reopened. It said on Monday that its liquidity included more than $800 million in cash, a $400 million revolving credit line and a new one-year $300 million revolving credit line. newsletter. . . Still, one space that’s thriving during the pandemic is at-home fitness solutions. Lululemon Athletica just spent half a billion dollars to buy at-home workout startup Mirror, and its shares are climbing. We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. How much is it? Feels like you. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and follows its $1 million investment in Mirror last year. Shop The Mirror. “This is about strengthening our community and our loyalty and our relationship with our guests and memberships, and it’s going to be its own revenue stream model, which we’re excited about.”. Watch Video. Please also read our Privacy Notice and Terms of Use, which became effective December 20, 2019. The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. For the retailer, there are no shortage of incentives. You can now shop the smart mirror everyone has been talking about at lululemon. Built on the premise of community, Lululemon can now assemble that community virtually — perhaps emulating Nike’s … Lululemon to buy home fitness start-up Mirror for $500M Back to video. Women's What's New; Men's What's New; All Women's ; All Men's; All Accessories; slide 1 of 2.Shop Align. . Instructors could wear Lululemon clothing, too, tying the businesses together and combining hardware, software, and retail. Stay strong all year with MIRROR. We apologize, but this video has failed to load. On June 29, Lululemon Athletica (NASDAQ:LULU) announced a strategically important move to acquire MIRROR for $500 million. Mirror charges customers $39 a month to stream its live or on-demand classes. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and … slide 2 of 2.Explore the MIRROR. Mirror founder Brynn Putnam was a Lululemon ambassador. Lululemon, the company behind trendy fitness apparel, is getting into the hardware business with Mirror. Women; Men; Accessories; Community; Mirror; Sign In; 0; Meet MIRROR. Lululemon, which is based in Vancouver, British Columbia, said it would promote Mirror online and sell its exercise machine in “a number of locations.” Mirror has only two physical locations. Mr. McDonald suggested that it would not be surprising to see instructors on Mirror clad in Lululemon gear in the future. The acquisition will also expand a “content creation partnership” between Mirror and Lululemon. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and follows its $1 million investment in Mirror last year. “Guests have accelerated their behavior and accelerated the adoption of in-home sweat.”. Following Lululemon’s first $1 million investment in Mirror in mid-2019, the $500 million purchase is the firm’s first acquisition betting the future of personalized in-home … Mirror Lululemon, the company behind trendy fitness apparel, is getting into the hardware business with Mirror. Lululemon Athletica Inc. is buying at-home fitness company Mirror for $500 million, a deal that aims to capitalize on pandemic-fueled upheaval in the fitness and retail industries. The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. . My Shop Preferences. ... Can I buy The Mirror on lululemon.com? Maybe Lululemon didn't overpay for Mirror, judging by the data. My Account My Account. Analysts are bullish on Lululemon Athletica Inc. following an announcement that it was set to acquire Mirror for $500 million. Lululemon Athletica Inc. has agreed to acquire on-demand interactive workout platform Mirror for $500 million.. Lululemon is buying exercise hardware startup Mirror for half a billion dollars, The deals are slow, but we got some exclusives for you, Plus, check out Samsung’s preorder perks for the Galaxy S21, WarnerMedia extends its 20 percent discount on HBO Max subscriptions, Saving you just over $3 per month, but you have to prepay for six months of service, Sign up for the (Bloomberg)— Yoga-pants retailer Lululemon Athletica Inc., No. The Times says Mirror expects to bring in over $100 million in revenue this year and to break even or be profitable in 2021. lululemon. Can I buy The Mirror in countries other than the US? Mirror, which is backed by investors including Spark Capital, Point72 Ventures and Lululemon, has live classes, on-demand workouts, and personal training options. Lululemon today announced plans to acquire home exercise startup Mirror for $500 million. Get that next-to-nothing feeling from head to toe in new, matching diamond dye Align (yes, that means the tank, too). Posted on June 30, 2020 July 2, 2020; 176 views; 3 minute read; Sapna Maheshwari; Image Courtesy of Vincent Tullo for The New York Times Credit: Vincent Tullo for The New York Times. Ms. Putnam, who will remain chief executive of Mirror and report directly to Mr. McDonald, said that the interactive fitness company had “tens of thousands of subscribers” and had seen its business accelerate during the coronavirus pandemic. What’s the relationship between lululemon and MIRROR? To learn more or opt-out, read our Cookie Policy. “It definitely has helped us learn and see quicker into the future now,” Mr. McDonald said. The apparel company’s CEO Calvin McDonald tells The New York Times the purchase is about “strengthening our community and our loyalty and our relationship with our guests and memberships.” He also noted that Mirror comes with its own revenue model, which he and the team are “excited about.”. Shares. Lululemon is now a tech company with their purchase of Mirror, plan is to operate as independent companies. The company, which launched in 2018, is based in New York. For a monthly premium membership of, say, US$100 a month, you could get discount on Lululemon gear, streaming video lessons, discounted mirror and other hardware, membership to its exclusive experiential stores with meditation and yoga studios, juice bars … Home fitness products like Peloton and streaming classes have boomed during the pandemic. Try refreshing your browser, or tap here to see other videos from our team. Lululemon said that while the pandemic was not the “trigger” for the purchase, it bolstered the case. Brynn Putnam, the chief executive of the exercise start-up Mirror. 0. Ms. Putnam, a 37-year-old Harvard graduate, was once a Lululemon ambassador herself. Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. Is The Mirror available at lululemon stores? “This isn’t just about getting guests to buy apparel,” Calvin McDonald, chief executive of Lululemon, said in an interview. … It has built a popular following online, including among celebrities like Reese Witherspoon, Alicia Keys and Ellen DeGeneres. Lululemon announced Monday that it’s acquiring Mirror, an at-home fitness company, for $500 million, according to CNBC.. Lululemon, the purveyor of expensive athleisure and activewear, is betting on the future of personalized remote exercise as a way to reach customers by acquiring Mirror, a home fitness start-up that sells a $1,495 wall-mounted machine for streaming workout classes. Although McDonald told the paper the COVID-19 pandemic didn’t “trigger” the purchase, the timing doesn’t feel coincidental. By choosing I Accept, you consent to our use of cookies and other tracking technologies. The nearly invisible home gym that transforms less than two feet of wall space into a cardio class, a yoga studio, a boxing ring, and so much more. Every type of workout—50+ genres—with new Live Classes … lululemon athletica noted its plans to buy MIRROR by way of a press release, noting that it hopes to close the sale by the end of the second fiscal quarter of this year. Total. 3 charts reveal why Lululemon just dropped $500 million to buy Mirror Maybe Lululemon didn't overpay for Mirror, judging by the data. Mirror will operate as a standalone company within Lululemon and retain its chief executive following completion of the deal, the companies said Monday in a statement. Peloton, for instance, increased its revenue by 66 percent during the last quarter and gained new users through a free 90-day trial offer. 0. By purchasing Mirror, Lululemon ensures it’ll have income coming in from a separate business while also staying in the fitness space. The purchase fits with Lululemon’s ambitions to become an experiential brand that helps customers live a “healthy and mindful lifestyle across multiple experiences,” as it said last year. Can I buy The Mirror on lululemon.com? Lululemon has been hurt by the coronavirus pandemic, but nowhere near as badly as most other apparel chains. I still have questions. 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