Peloton Interactive shares jumped 30 percent Wednesday on the news that the company has entered a five-year partnership with Lululemon.
The high-end fitness brands announced they have reached a'multi-dimensional agreement' by which Peloton will supply all of Lululemon's digital fitness content and, in turn, Lululemon will become the primary apparel provider to Peloton.
Peloton's CEO, Dion Camp Sanders, said in a statement that the company's chief emerging business officer, Dion Camp Sanders, was not involved in the financial crisis.
Sanders said he hoped to give our communities one-of-a-kind experiences and special content that will inspire them to achieve their goals.
By entering into the arrangement, Peloton will be offering co-branded apparel from Lululemon's product lines at its retail stores and online beginning Oct. 11 and starting Nov. 1, Lululemon's Studio All-Access Members will be granted access to thousands of Peloton classes.
The presence of Lululemon's customer base appears to be welcome news for Peloton investors as the company has been trying to reverse the decrease in demand for its equipment by expanding access to its content with more membership tiers.