Lululemon to buy home fitness start-up Mirror for $500M

30/06/2020 Off By admin

The logo for Lululemon Athletica is seen outside a retail store in New York City, U.S., March 30, 2017. Brendan McDermid / REUTERSLululemon Athletica Inc said on Monday it would buy home fitness company Mirror for $500 million, as the high-end yogawear company looks to cash in on booming demand for at-home fitness classes spurred by coronavirus lockdowns.The Vancouver, British Columbia-based company’s shares, which have gained more than over 27% this year, rose 3% in extended trading.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.Lululemon, which had to pause its own yoga classes due to the pandemic, is hoping that a deeper integration of its products into home workout classes will help it grab a slice of this boom.The company has fared better compared with other apparel makers during the pandemic, with sales on its app and website surging 70% in the last reported quarter.Lululemon said on Monday it plans to fund the deal, expected to close in the second quarter, through a combination of cash on hand and existing credit lines.Mirror, a New-York based start-up launched in 2018, sells mirror-like video monitors for nearly $1,500 and offers monthly subscriptions for live classes, as well as on-demand workouts.Shares of Peloton Interactive Inc fell 2% in extended trading after the news of the deal.CommentsShare your thoughts