Lululemon buys Mirror Exercise Equipment for $ half a billion

Lululemon buys Mirror Exercise Equipment for $ half a billion

Lululemon, a company behind trendy fitness clothing, is embarking on a hardware business with Mirror. Fitness announced on Monday that it would start spending $ 500 million to buy a new startup that sells a reflection indicator for $ 1,495 so customers can exercise while training and watching.

The CEO of the clothing company Calvin McDonald tells The New York Times Procurement refers to “strengthening our community, our loyalty, our guest membership.” He also noted that the Mirror comes with its own revenue model, which he and his team are “inspired”.

The: Times: He says the Mirror expects to generate more than $ 100 million in revenue this year, breaking even in 2021 to be profitable or profitable.

The epidemic has brought retail stores to the forefront, forcing stores to close their private spaces for months and lead to widespread unemployment. Lululemon’s net sales fell 17 percent last quarter, although online sales rose 70 percent. However, the flowering space during the epidemic is home fitness solutions. For example, Peloton grew Over the last quarter, its revenue rose 66 percent to new users through a free 90-day trial offer.

By purchasing a mirror, Lululeon ensures that it will generate revenue from a separate business while remaining in the fitness area. Teachers could also wear Lululemon clothes, linking business, combining hardware, software, and retail.

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