Lululemon To Join S&P 500, Stock Surges in Response
The company that put leggings on the map is now part of the prestigious list representing 500 of the largest publicly traded companies in the U.S.
Lululemon’s stock rose over 10% Monday after it was announced that the activewear giant will be added to Wall Street’s S&P 500 index, replacing Activision Blizzard.
LULU will start trading in the index on Wednesday.
News of Lululemon joining the S&P 500 caused the activewear brand’s stock price to hit its highest level since December 2021. LULU is now up nearly 30% year-to-date.
Companies joining the index, which represents 500 of the largest publicly traded companies listed in the U.S., must meet certain criteria, including a market cap of $14.5 billion or more. As of Monday, Lululemon’s market cap was approximately $50 billion.
From Apparel To Fitness Content
The activewear brand recently made headlines for joining forces with Peloton, becoming the provider of Peloton-branded apparel in exchange for the connected fitness company creating exclusive digital fitness content for Lululemon Studio. Together, the two companies hope to reach a combined 20 million members and guests in its five-year global partnership.
As part of the deal, Lululemon tossed its connected fitness dreams (and its $500 million Mirror) to the curb, announcing it would discontinue the device before the end of the year.
Despite its content deal with Peloton, the athleisure brand recently reaffirmed its ongoing retail partnership with boutique fitness franchisor Xponential Fitness.
The Vancouver-based activewear company reported strong Q2 earnings, opening ten new stores and seeing revenue increase 18% to $2.2 billion.
