Lululemon is intensifying its commitment to providing virtual workout options to its customers.
The athleisure brand struck a partnership with Xponential, the largest global franchisor of boutique fitness brands, to bridge the divide between digital and in-person fitness experiences.
“Our guests are looking for hybrid fitness options, and this extension of our partnership will enable them to continue to access workouts from Pure Barre, Rumble, AKT, and YogaSix both digitally and through in-person fitness experiences,” Celeste Burgoyne, president of Americas and global guest innovation at Lululemon, said in a statement.
Lululemon’s partnership with Xponential marks the latest effort by the company to expand its fitness offerings. In 2020, the company acquired the remote fitness company Mirror for a sum of $500 million. This acquisition enabled Mirror to function as an independent entity under the umbrella of Lululemon.
Fast forward to September 2022, the Vancouver, Canada-based company launched the Lululemon Studio subscription program at a cost of $39 per month. Initially, this program necessitated owning a Mirror device and granted access to exclusive Mirror content as well as classes from fitness franchises like YogaSix and Pure Barre. However, in March, the company shifted its focus toward offering app-based content and announced the upcoming release of a more affordable subscription option that no longer necessitated owning a Mirror device.
During its latest earnings call, the company further deviated away from its focus on Mirror, with CEO Calvin McDonald making no specific mention of Mirror and instead choosing to highlight the recent introduction of the Lululemon Studio digital app. McDonald emphasized that the new app subscription, priced at $12.99 per month, would provide an expanded range of online classes from Lululemon’s database, eliminating the requirement for Mirror hardware.
In the quarter, Lululemon disclosed revenue of $2 billion, reflecting a 24% increase compared to Q1 2022. Additionally, the company experienced a 53% surge in net income to $290 million.
Lululemon’s intentions regarding the future of Mirror hardware remain uncertain. In April, Retail Bum reported that the activewear brand was contemplating the sale of Mirror, citing undisclosed sources familiar with the matter. However, Lululemon responded to the news by stating that it does not comment on rumors or speculation.
The news of the company’s digital workout expansion efforts comes after the initial launch in October 2022.
