Who’s the fittest of them all? It’s Lululemon ( ) after buying fitness startup Mirror in a bid to break into the at-home exercise market.
The high-end performance apparel retailer paid $500 million to acquire Mirror. Its flagship product is a high-tech mirror that can stream fitness classes.
- Lockdown fitness. Lulu hopes that the millions of gym rats forced indoors by the pandemic will stick to their new habits and continue using at-home fitness options.
- Coming for the crown. Peloton is the current king of in-home fitness. Shares of Peloton are up over 110% since lockdowns began three months ago.
- Pricey reflection. The Mirror retails for $1,500 and includes access to live yoga and fitness classes.
How does it affect my wallet?
Money maker. Unlike many unprofitable tech startups, Lulu says Mirror will be profitable by next year. Currently, the company generates about $100 million in annual revenues.
- Lulu hopes the acquisition will help the company break into the fast-growing home fitness market.
- Brick and mortar retail is a big part of Lulu’s strategy, but the Mirror acquisition gives Lulu a new avenue for revenue growth.
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