Outdoor Voices is in the middle of a firestorm after former employees have revealed the troubled activewear company is headed towards bankruptcy, following reports that the brand is closing all stores and transitioning to an online-only retail model.

The brand has seemingly removed all of its 15 brick-and-mortar retail locations nationwide from its website. 

The news of the potential insolvency was first reported by Sourcing Journal, which cited former Outdoor Voices employees with close knowledge of the matter. The activewear brand has also missed rent and vendor payments in recent months, according to the publication, and gave pink slips to most of its corporate employees.

According to another report, from Puck News, Outdoor Voices has already closed all of its retail locations and intends to focus solely on its e-commerce business.

Rise & Fall

Like Lululemon, Outdoor Voices has developed a cult-like following as devotees of the brand have embraced its merchandise as much as its #doingthings lifestyle ethos. Founded in 2013 by Tyler Haney, the brand moved from its New York City roots to Austin, Texas, as it grew. 

By early 2020, right before activewear and athleisure began to see a pandemic-related boom, Haney stepped down as CEO during restructuring efforts. Internal strife had been brewing and an anonymous letter had been sent to the Outdoor Voices’ board and executives that targeted Haney for her management style.

Financial troubles were also percolating, with the company’s valuation down to $40 million in 2020, a steep decline from its 2018 valuation of $110 million. By 2021, the brand had named Gabrielle Conforti, former Urban Outfitters president, as its CEO. 

The activewear company had begun shopping for a buyer in 2022, according to Business of Fashion. 

Haney may have been out of the picture, focusing on Joggy, a cannabis supplement brand, but she appeared to find time to keep a watchful eye on the brand she founded — even leaving comments last year on Outdoor Voices’ social media posts that indicated she had felt the brand had lost its way. 

Now, with news swirling of a potential Outdoor Voices bankruptcy, the active Reddit community on r/OutdoorVoices has been posting images of closed stores, many with notes in the windows that have the Venmo handles of former employees. One photo from a shop in Minneapolis reads, “Our (chairwoman) Ashley Merrill refuses to pay anyone severance. We appreciate anything that you can give. All funds will go directly to this staff. Thank you!” 

Activewear Brands Struggle Post-Pandemic 

It’s been a trying time for some in the activewear game, with leggings giant Lululemon even admitting that it will remain cautious in 2024 in the face of market uncertainty.

Gap’s activewear arm, Athleta, reported an 18% net sales drop in its third quarter of fiscal 2023 compared to the prior year, noting in its earnings release that sales continued to be a challenge. Athleta has said it would work on re-engaging its core customers.

Activewear brand Bandier had also been looking for a buyer to mitigate supply chain challenges before getting acquired along with Carbon38 by BC Brands in January. 

More traditional sportswear giants have also seen some headwinds. Under Armour also reported slowing sales, and Nike cut its annual revenue forecast, announcing a $2 billion cost-savings plan that included restructuring.

One outlier is Gymshark, which recently reported a rather uncommon push-and-pull situation, having experienced slumping profits in 2023 (reporting $16.5 million, down from $35.3 million) but a 15% revenue increase. The brand, founded and led by U.K.’s youngest billionaire, Ben Francis, is going full-steam ahead. 

Outdoor Voices didn’t immediately respond to Athletech News’ request for comment

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Athleta has dropped a new activewear collection with advanced, no-slip fabric technology made for the most intense, high-impact workouts. 

It’s a crowded space, the activewear game — especially as brands and retailers clamor for the spending power of women, who account for nearly 60% of activewear sales. In recent weeks, fitness pioneer Tracy Anderson and Calia, a women’s performance wear brand sold exclusively at Dick’s Sporting Goods, have debuted women-focused activewear that places fabric functionality at its core.  

Athleta’s new Train Collection is not only innovative, it brings to life the brand’s mission to empower women through movement, said Casey Schumacher, senior director of design.

“With this launch, Athleta continues its commitment of creating products for real women with our obsessive attention to every detail,” she said.

The Gap-owned brand says it conducted third-party lab testing to perfect the eight-piece activewear collection, $69 – $135, to achieve the ideal fit, design and functionality for active women.

“We wanted to ensure we created a product she could jump, lift, sweat and move in without distraction,” Schumacher explained.

Athleta’s new collection relies on the magic of its PowerMove fabric, crafted partly from post-consumer plastic bottles (yet comfortable) while offering active-friendly coverage and stretch.

The brand says its Train Collection is “anchored” by  Interval Tight, which includes two lengths of high-performance leggings, capris, shorts with stay-put bonded waistbands and a fitted jacket with a removable hood.

For pre and post-workout style or layering purposes, Athleta has also included an Unstoppable Fleece assortment with ‘Flex Fleece,’ a new fabric made with spandex and recycled polyester fiber. A zip-up, lightweight jacket, vest and joggers are available, all quick-drying for the comforts of outdoor training.

Athleta also took care to include pockets in the pieces of the Train Collection for streamlined storage needs.

Sportswear Slump

Activewear and athleisure may have boomed during the pandemic, but brands are facing a more challenging environment at the moment.

Gap reported Athleta’s net sales for the third quarter of fiscal 2023 were $279 million, down 18% compared to the prior year. The apparel company noted in its earnings release that Athleta’s sales in the quarter “continued to be challenged” and indicated that the brand would work to “reengage its core customer through better product and brand right marketing.”

Athleta isn’t alone — Under Armour is also facing a sportswear slump after reporting slowing sales. Last month, Nike cut its annual revenue forecast and announced a $2 billion cost-savings plan involving layoffs at the sportswear giant.

Lululemon, a leader in the active and athleisure space that joined the S&P 500 last year, also remains cautious in the face of market uncertainty as it enters the men’s footwear space. Although Lululemon’s men’s line saw a 15% growth in 2023’s third quarter, brand awareness has remained low in the U.S. and even more so outside of North America. 

The post Athleta Launches ‘Train’ Line for Intense Workouts appeared first on Athletech News.

A new fitness mirror has hit the market — and this time, it’s powered by AI and driven by DNA. 

Alter, a biometric-based at-home fitness and wellness ecosystem, has officially launched, empowering consumers with DNA-based insights to personalize workouts and recovery for optimal results.  

Taking human performance to the next level, Alter uses a non-invasive cheek swab to identify 13 traits such as exercise responsiveness, stress and anxiety resilience, inflammation risk, carb, fat, and protein responsiveness, weight loss and ease of keeping weight off, mental decline risk, chronotype, motivation level and bone density risk.

After receiving a personalized report, an Alter Signal wearable is provided to gauge readiness and recovery needs and can be worn as a watch, armband or clipped to a bra. An app pulls the entire Alter experience together with personalized insights, including genetics-informed workout plans, nutrition advice, sleep reports and access to fitness and wellness coaches for one-on-one guidance.

Alter’s 50-lb mirrored device is the essential component of the experience, offering a pathway to personalized workouts, real-time heart rate tracking and AI-powered form correction. Designed to be low-profile, the fitness mirror blends into a living space when not in use. 

While Alter will recommend the ideal cardio and/or strength workout, it will also encourage “work-ins” when needed — opportunities for recovery through breathwork, yoga or sound baths.

“The science that is integrated into Alter is our superpower – we have taken the guesswork out of working out (to) give people a program that will work optimally for them,” said Scott Cohen, who co-founded Alter along with Blake Johnson. “Beyond the incredible science, we are making Alter accessible to as many people as possible through guaranteed financing and waived monthly subscription fees when they hit their goals to truly make an impact on human wellness.”

Alter charges $39.99/month as a membership fee for individuals or $59.99/month for households of up to five people. As an incentive, Alter will waive the membership fee once its AlterSense plans are completed. Aside from the membership fee, the Alter system is either $99/month or a one-time payment of $2,995.

The purchase also includes an equipment pack consisting of a yoga mat, foam roller and exercise bands. Additional equipment add-ons like weights are also available.

Personalized Daily Fitness

A holistic approach to wellness is crucial for achieving and maintaining overall health, points out Lauren Sherman, Alter’s chief experience officer. With rich insights, Alter can address the unique day-to-day needs of each individual. 

“If someone gets poor sleep after a night out, for example, our coaches tailor the user’s daily fitness plan based on what their body is capable of and needs that day, so instead of strength training, we might suggest a work-in like yoga,” Sherman tells Athletech News. “This comprehensive approach – rather than solely focusing on reps completed – ensures that users receive tailored support across all aspects of their wellness journey.”

Alter’s technology puts consumers in the driver’s seat of their health journey while navigating barriers in traditional care.

“When it comes to wellness, ease and accessibility continue to be paramount to consumers,” Sherman said. “By democratizing access to this personalized approach, we’re making it easier for everyone to prioritize their health and well-being, which is increasingly important in light of the rising challenges with healthcare.”

Can Alter Turn the Connected Fitness Tide?

Connected fitness mirrors haven’t had the best of luck on the market recently – Lululemon famously scrapped its mirror endeavors last year.

However, Alter’s ecosystem encompassing health data and personalized programs may cast its fitness mirror in a new light. The company’s executive team includes leaders from Nike, Under Armour, professional sports organizations and leagues, Mayo Clinic, National Academy of Sports Medicine (NASM), Stanford Sleep Lab and UCSF Human Performance Center.

Looking ahead, Sherman says the company will listen closely to feedback to enhance the Alter ecosystem.

“We’re continually adding new classes and programs and are moving into R&D – we will have some exciting updates in the coming months; stay tuned,” she said.

The post Alter Launches DNA Fitness System, Smart Mirror appeared first on Athletech News.

Lululemon is launching its first men’s footwear line, a strategic decision that’s part of the athleisure brand’s overarching goal to double its men’s business and compete more aggressively in a space already crowded with established brands like Nike and Adidas.

The Vancouver, Canada-based brand is launching its first men’s casual sneaker, called the “cityverse,” as well as two new running shoes for both men and women, the “beyondfeel running shoe” and the “beyondfeel trail.”

Cityverse will be available on February 13^th, and the new running models will launch on March 19^th and in May, respectively. 

Lululemon hopes that improving its men’s business overall will help it grow total revenue to $12.5 billion by 2026. The company’s sales in the last quarter reflected a 19% increase, a growth rate that was down slightly from 27% in the previous year, as competitors like On Running have grown in popularity.  

“With new performance running shoes and our first-ever casual sneaker added to our lineup, we can now outfit both men and women in versatile gear from head to toe,” said Sun Choe, chief product officer at Lululemon. “Extensive research, wear-testing and ambassador feedback went into each of these designs to ensure a perfect fit, no matter the activity.”

To create the shoes, the brand studied the differences in foot shape between men and women and made adjustments based on intended activity. The beyondfeel running shoe contains seven combinations of upper material, foam compound and construction methods between the men’s and women’s designs to account for such differences. 

While apparel and accessories remain the focus of Lululemon’s business, the foray into footwear is seen as more than just an add-on. This expansion is perceived as a strategic move to strengthen the brand’s position, especially against rivals who have long made men’s footwear a core part of their offerings.

Lululemon’s footwear collection will not be limited to these initial launches. The brand plans to introduce further innovations to its footwear collection throughout the year, including the Restfeel Sandal. The newest footwear collection will be available in select stores across North America, Europe, and China Mainland, as well as online.

The post Lululemon Enters Men’s Footwear With Big Ambitions appeared first on Athletech News.

CityRow has been acquired by rower maker WaterRower, representing another step in what may be a gradual consolidation of the connected fitness market.

The two companies are familiar with one another, with the Rhode Island-based WaterRower serving as a manufacturing partner for CityRow, which boasts an omnichannel model with at-home rowers, digital content and in-person studios. 

The terms of the deal have not been disclosed.

CityRow founder and CEO Helaine Knapp confirmed the news on LinkedIn, writing: 

“As of this morning, CityRow has been acquired by our longstanding strategic partner WaterRower! This milestone comes almost 10 (!) years to the day since we opened our first studio in NYC. WaterRower has been our backer, partner, and steady manufacturer since our inception. I could not be happier with this new phase for CityRow – there is no better place for this brand, our clients, and our team than under their stewardship.”

In a call to Bloomberg, Knapp noted that the pandemic had a “crazy impact on connected fitness” and described this stage as a “phrase of recalibration,” underscoring that this is the ideal time for such a deal. 

Boston-based connected fitness rowing brand Hydrow was rumored to be mulling acquiring CityRow last fall.

In a letter to CityRow members that has circulated online, Knapp acknowledged the deal, writing that WaterRower will have a “direct role” in CityRow’s operations. She assured that new classes and content are coming next month and that members will still have access to the CityRow app and features, with WaterRower continuing to support and service CityRow equipment.

A New World for Connected Fitness

CityRow secured a $12 million funding round in 2021 to bolster its company-owned and franchise studio model. It was smooth sailing at the time, with the connected rowing company reporting a 375% revenue growth due to the sales of its rowing machines, monthly subscriptions and franchise sales amid the pandemic.

Amid post-pandemic challenges driven by the return of in-person fitness, two other notable acquisitions and power collaborations have occurred in the connected fitness realm in recent months — Lululemon threw in the towel on its connected fitness Mirror ambitions, instead teaming up with Peloton for a five-year content deal, while Clmbr was acquired by smart home gym maker Forme last October following the closure of Clmbr’s Los Angeles fitness studio and layoffs.

The State of Rowing

While connected rowing hasn’t yet soared into the mainstream quite like stationary bikes and treadmills have, the modality has developed its own subset of dedicated enthusiasts. 

Celeb-backed Hydrow beefed up its C-suite late last year to accelerate its growth. The connected at-home rowing company closed out 2023 on the red carpet, teaming up with the George Clooney-directed film, “The Boys in the Boat,” to deliver themed rowing workouts for its members.

Game-based in-home rowing brand Ergatta (made in partnership with WaterRower) continues to churn out advancements to the rowing experience, recently launching “Coach AI” software to give rowers personalized assessments and recommendations. The rowing brand also announced an integration with Apple Watch last year. 

However, Peloton CEO Barry McCarthy indicated to investors last year that consumer awareness for the connected fitness brand’s rower had been low, despite favorable reviews. 

The post WaterRower Acquires CityRow in Connected Fitness Consolidation appeared first on Athletech News.

Endless doom-scrolling on TikTok may soon be replaced with inspiration to move and get fit, after Peloton struck a deal to place its fitness content on the uber-popular short-form video platform with a staggering one billion users. The exclusive partnership has already moved investors, with PTON shares surging around 14% on Thursday after the deal was announced.

Peloton will deliver its workout content to TikTok users in a new fitness hub dubbed #TikTokFitness Powered by Peloton, a dedicated and co-branded space to inspire TikTok users (60% of whom are classified as Gen Z) with live Peloton classes, instructor series, creator partnerships, class clips and celebrity collaborations.

“Peloton and TikTok both move at the speed of culture to better serve our respective audiences,” said Oli Snoddy, vice president of consumer marketing at Peloton. “We collectively recognize the way people engage with fitness is constantly changing. Our team is excited to complement TikTok’s already burgeoning fitness content by introducing the magic of Peloton to new audiences and in completely new ways.” 

The deal comes less than a year after Peloton’s notable rebrand, which saw the connected fitness company move away from hardware in favor of its workout content and accompanying app. The deal with TikTok marks the first time Peloton will produce social content outside of its own channels. 

“When it comes to the fitness category, we have thousands of communities coming together to connect on everything from #thefitnessjourney to bonding as #runnersoftiktok,” said Sofia Hernandez, global head of business marketing at TikTok. “We’re thrilled that this partnership will bring inspirational fitness content and entertain Peloton users who come to TikTok to learn, connect with instructors, share fitness journeys, and find community.”

Peloton’s Gen Z Push

Although Peloton’s refreshed branding seems to have exposed the brand to new fitness audiences, the connected fitness company has struggled to convert free app users into paid subscribers. Ever the optimist, CEO Barry McCarthy assured investors on Q1 FY2024’s earnings call that with the company’s investments in its Bike rental program, a growing international presence and various partnerships (as seen with Lululemon, Liverpool Football Club, the University of Michigan, New York Road Runners and the NBA and WNBA) Peloton is “making a large bet” on growing its app subscribers this year.

The company’s latest move — partnering with the top-ranking app of the modern era — will further democratize its brand and promote accessibility to its fitness content with Gen Z, also known as “The TikTok Generation.” The new partnership follows a special report Peloton released that covers the fitness preferences of Gen Z, along with other insightful data on some of its newest consumers. 

Peloton also recently welcomed Lauren Weinberg as its new chief marketing officer following the departure of former CMO Leslie Berland, who oversaw the connected fitness company’s rebrand. In her new NYC-based role, Weinberg is now leading Peloton’s brand and product marketing, growth marketing, creative, consumer insights, membership and global communications. McCarthy has credited Peloton’s new CMO for her growth-first mindset and focused approach to scalability.

The post TikTok Taps Peloton for Exclusive Fitness Content appeared first on Athletech News.

Fitness and wellness are growing priorities for many. According to Lululemon’s 2023 Global Wellbeing Report, 67% of people place wellbeing as a top priority, but only 12% say their wellbeing is where it should be. Looking back at 2023 and toward 2024, how will consumers try to narrow the gap between their fitness goals and their current reality?

Consumers’ affinity for connected fitness remains an open question, although virtual reality seems to have carved out a niche for those who desire gamified workouts. Wearables continue to advance, but are they innovating too fast? Strength is seemingly here to stay, with Pilates and functional training more popular than ever. And how will the rise of weight loss drugs impact the traditional fitness industry? While the future of fitness and wellness is uncertain, one thing is for sure: the industry is unlikely to show any signs of slowing down in 2024.    

To get you ready for a new year, Athletech News previews the top fitness and wellness trends to watch in 2024:

• 

  Can Connected Fitness Rebound?

  Connected fitness has been slow to recover from the post-pandemic surge in popularity of in-person workouts. Lululemon stopped selling Mirror, its connected fitness unit, at the end of 2023. It even struck a five-year deal with Peloton to provide fitness content for Lululemon Studio, which is replacing Mirror, as well as create co-branded apparel. The two companies also hosted a series of in-person events, demonstrating a collaboration between the one-time competitors. Earnings showed that Lululemon’s previous $500 million acquisition of Mirror was nearly worthless. Mirror’s downfall might be reflective of the current state of connected fitness. 

  Peloton, meanwhile, continues to cite hope for a turnaround. It recently rebranded to a more content-focused model, and offered extensive holiday deals in November to drive sales, including up to $700 off of Peloton purchases. The company is facing difficulties converting free app users into paying subscribers, which has led to wider-than-expected losses. Peloton is hoping to boost revenue with high-profile partnerships and the relaunch of Tread+, but the company has cited concerns that inflation-weary consumers will hesitate to invest in its expensive hardware.

  Connected fitness companies that focused on premium hardware as opposed to virtual programming have also been struggling, such as Tonal and Hydrow, each of which began 2023 with layoffs. Even Clmbr, the LeBron James and Jay-Z-backed vertical climber maker, laid off around 25% of its staff earlier this year before being acquired by Forme.

• 

  Will In-Person Fitness Continue To Grow?

  While connected fitness struggles, in-person is back and better than ever. IHRSA’s 2023 Global Report cited a resurgence of consumers connecting and engaging during in-person workouts. Today, boutique fitness accounts for 42% of all gym memberships. The report also cited high-value, low-price and luxury fitness facilities gaining the most over 2023.

  Planet Fitness continues to win big with Gen Z: Morning Consult named the brand on a list of top ten leading companies that young consumers are eyeing. The fitness franchise has an active presence on social media platforms, and its “Classic Membership” is just $10 a month, a price that hasn’t been raised in 30 years, although the brand is considering a slight increase. Crunch Fitness is also expanding rapidly. The New York-based franchise brand currently has over two million members and operates over 450 gyms worldwide. CR Fitness, the top Crunch Franchisee, plans to build 15-20 fitness clubs per year, growth that has led to over 1,000 employment opportunities. 

• 

  What’s Next for Weight Loss Drugs?

  GLP-1 weight-loss drugs have also taken the fitness and wellness world by storm this year. Barclays has estimated that the industry could be worth $100 billion by 2030 and perhaps even $200 billion within the next ten years. WeightWatchers notably pivoted from its points system and weight-loss meetings to offering access to weight loss and diabetes drugs. Food companies have noticed declining sales and have scrambled to shift their strategic focus. Nestlé has created new vitamin and mineral-packed products for those on appetite suppressants. 

  The fitness industry has been eager to welcome GLP-1 users: Life Time launched the Miora Longevity and Performance clinic at its flagship Target Center health club in downtown Minneapolis. The clinic offers doctors, physician assistants, nurses and personal trainers in addition to weight loss drugs and non-invasive therapies like red light therapy, hormone replacement therapy, and infrared saunas. Xponential Fitness has also leaned into the weight loss medication sector, acquiring Lindora, a metabolic health clinic.

• 

  Will Strength Training Continue To Surge?

  According to MindBody’s 2024 fitness trend report, the top three workouts of 2023 were Pilates, yoga, and strength training. Strength training in particular is growing in popularity with Gen Z. Les Mills partnered with Adidas earlier this year on a strength-focused workout to target younger consumers. The launch of Nike Strength, a collection of strength training equipment for elite and everyday athletes, also demonstrates the growth of the category. Pure Barre launched Define, a low-impact fitness class that incorporates heavier weights than those used by most boutique fitness brands. CorePower Yoga’s most recent class addition was Strength X, a high-intensity strength training class that incorporates traditional yoga poses with targeted resistance exercises. Orangetheory Fitness, known for its cardio workouts, has also gotten into the strength training craze.

  At 2023’s IHRSA Convention in San Diego, Fabrizio Cecchinelli, format manager at Technogym, cited two main reasons for strength training’s surge in popularity: social media and science. Strength training’s photogenic nature makes for aesthetically pleasing posts. The science behind strength training has also propelled workouts, as a search on PubMed, the National Institute of Health’s database of biotechnology information, revealed that in the last decade, the number of searches for scientific information related to the benefits of strength training increased almost fourfold.

• 

  Can Fitness Wearables Bridge the Healthcare Gap?

  Wearables continued to evolve in 2023 as consumers using the devices for reaching various fitness goals are increasingly using wearables to generally monitor their health. New hardware, software, and apps have allowed turned wearables into customizable health clinics. Heart rate monitors are standard on many wearables, and some even have FDA approval for detecting abnormalities like atrial fibrillation. Whoop offers a feature called Health Monitor which provides a daily update on all user metrics. Members can send this report as a PDF directly to a doctor or medical professional. Devices have also gotten more social. Oura launched Circles earlier this year, where members can share high-level data like “Readiness,” “Sleep,” and “Activity” scores with friends and family members. Apple Watch also allows users to share their activity with family, friends or coaches.

  Strength training has also become more prominent in the wearables market. Whoop became the first fitness wearable to measure strength earlier this year. It now allows users to measure strain during strength workouts by tracking weights, reps and sets for a personalized view of their training. Oura also launched a co-branded Rest & Recovery kit with Equinox that featured a specially designed ring cover for weight training and strenuous workouts. The innovation addressed users’ concerns about the Oura ring being less compatible with barbell training. 

• 

  Will VR Fitness Take Off?

  While connected fitness has waned, virtual reality (VR) fitness is a fairly nascent field, but one that’s becoming more prominent in the industry. Les Mills is investing in the space, with its recent launch of XR Dance and Bodycombat. Xponential Fitness has created Xponential+, a new virtual and mixed-reality app for Meta Quest 3 that allows users to essentially take boutique fitness classes in their living room.

  On the athleisure front. Alo Yoga teamed up with Obsess, the experiential e-commerce platform, to launch an immersive virtual reality shopping experience. But it hasn’t been all fun and games—Meta was sued earlier this fall by Andre Elijah Immersive Inc (AEI), a self-proclaimed new entrant to the VR fitness space which alleged that it developed a fitness yoga app with Meta and Alo before the relationship soured. Most of the lawsuit alleges that Meta has a vertical monopoly on the VR fitness space, and colluded with Alo to keep AEI out of the market. Despite some setbacks, Meta is still leaning into the health and fitness space, believing in the power of virtual reality to make workouts fun and engaging. 

The post The Fitness & Wellness Trends To Watch in 2024 appeared first on Athletech News.

In the first full year of post-pandemic life, the fitness and wellness industry has seen its fair share of headlines, both positive and negative. 

While dealmaking has cooled off some from its pandemic-era high, there still were plenty of major fitness and wellness moves in 2023, including brand partnerships, nine-figure funding rounds and celebrity endorsement deals. 

Athletech News recaps the eight fitness and wellness moves that defined 2023, and forecasts what each could mean as we enter a new year.

• 

  1. Peloton, Lululemon Strike Content & Apparel Partnership 

  Two of the biggest brands in the fitness and activewear categories joined forces in a major way in 2023. As part of a five-year global partnership, Peloton agreed to create exclusive digital fitness content for Lululemon Studio, while Lululemon became Peloton’s official apparel partner, creating co-branded clothing for instructors and fans. 

  Why It Matters:

  The deal marked the final nail in the coffin for the Mirror, Lululemon’s ill-fated piece of connected fitness hardware that never quite lived up to its $500 million price tag. Lululemon announced it would be officially discontinuing Mirror, instead pivoting fully to Lululemon Studio, its digital fitness platform which now gives members access to Peloton’s library of workout classes. 

  For Peloton, the deal shows the connected fitness company’s commitment to becoming more than just a “bike company,” as it looks to offer different types of fitness content, from yoga to strength training, in addition to spin classes. 

  What To Watch in 2024:

  While Peloton has built a large following of dedicated fitness fans, the jury is still out on whether the company can successfully transition from being a cycling-focused brand to a one-stop shop for diverse fitness content. Providing content for Lululemon Studio will expose Peloton’s workouts to even more people around the world, potentially helping the connected fitness company make good on its bold expansion plans.

• 

  2. WeightWatchers, Life Time & Xponential Make GLP-1 Moves

  For better or worse, the weight-loss-drug era is officially here. GLP-1s like Ozempic and Wegovy are flying off the proverbial shelves as consumers seek access to the drugs, which have been celebrated for their proven ability to help people lose significant amounts of weight in a relatively short period of time. 

  WeightWatchers acquired telehealth brand Sequence in early 2023, a move that signaled the weight loss company’s shift from a food-based approach to adopting prescription drugs including GLP-1s. WeightWatchers still offers its famous Points Program, but the company has made weight loss meds a core part of its offering. 

  In the fitness realm, brands including Life Time and Xponential Fitness are embracing weight-loss drugs. In November, Life Time launched its first Miora Longevity and Performance clinic, offering members access to GLP-1s such as Ozempic under medical supervision, in addition to a host of other wellness benefits. 

  Xponential, meanwhile, announced its intention to acquire Lindora, a metabolic health brand with clinics offering weight-loss medications. Xponential plans to rapidly scale the brand through franchising. 

  Why It Matters:

  The deals struck by WeightWatchers, Life Time and Xponential show that at least some established fitness and wellness brands are willing to embrace GLP-1s, making weight loss meds an important part of their business strategy. 

  What To Watch in 2024:

  There’s still much to learn about the long-term effects of GLP-1s on sustained weight loss and other aspects of health. Some analysts predict that the rise of weight-loss drugs will lead to a corresponding rise in gym membership sales as more consumers become confident enough in their bodies to want to hit the gym; others have expressed skepticism about the drugs’ ability to spur meaningful changes in people’s fitness and wellness habits.

• 

  3. Apple Partners With Anytime Fitness

  Apple has been pushing further into fitness and wellness for several years now, with advancements in Apple Health and the launch of Apple Fitness+. In November, the tech giant inked its first deal with a gym brand, partnering with Minnesota-based Anytime Fitness. Through the collaboration, Anytime Fitness members across the U.S. and Canada will have access to an Apple Fitness+ subscription included in their membership at no extra cost. The two companies could take their partnership even further with more collaborations down the road, Anytime Fitness CEO Chuck Runyon has told Athletech News. 

  Why It Matters:

  The deal marks Apple’s firm entry into the brick-and-mortar gym space, potentially signaling a major shift in how the company will approach fitness and wellness in 2024 and beyond.  

  What To Watch in 2024:

  It will be interesting to see if Apple partners with any other gym brands, or if the tech giant is content to ride with Anytime Fitness and its network of 5,200 locations worldwide for the time being. For Anytime Fitness, can a partnership with Apple sway consumers to choose AF over rival low-price, high-value gym chains like Planet Fitness, Crunch Fitness and others?

• 

  4. Pvolve Inks Deal With Jennifer Aniston

  Functional Fitness brand Pvolve reached a new level of mainstream recognition and notoriety this year, partnering with celebrity A-lister Jennifer Aniston. The former “Friends” star will advise on Pvolve’s marketing, product and programming strategies, as well as star in Pvolve commercials, including a strength-focused ad campaign that launched in August.

  Why It Matters:

  While celebrity endorsements are nothing new for the fitness industry, getting a star on the level of Jennifer Aniston is uncommon, and it bodes well for Pvolve as the brand expands its footprint of brick-and-mortar studios through franchising. 

  What To Watch in 2024:

  So far, the partnership seems to be bearing fruit for Pvolve: the fitness brand reported a 650% increase in branded search and a 125% increase in franchise inquiries since partnering with Aniston. As time passes, we’ll see how much Pvolve leans on its celebrity affiliation as the brand continues to grow nationwide and even internationally.

• 

  5. Nike Launches Group Fitness Studios, Equipment Line

  Nike is no longer just a fitness apparel brand. In 2023, the Swoosh entered the brick-and-mortar space, opening group fitness studios in Southern California, with another location planned for Austin, Texas. In partnership with FitLab, Nike Studios offers functional training and endurance workouts led by expert instructors. The sportswear giant also pushed into the fitness equipment space, launching Nike Strength, a collection of strength training equipment including barbells, bumper plates, dumbbells and kettlebells, all of which feature prominent Nike branding. 

  Why It Matters:

  As seen with Apple, “blue chip” companies are increasingly entering the traditional fitness space. Nike clearly believes in the long-term potential of the fitness and wellness market, announcing it would hire over 1,000 global fitness trainers to lend expertise in creating holistic fitness content, programming and experiences, presumably as part of its Nike Studios endeavor. 

  What To Watch in 2024:

  Nike could make significant inroads into the fitness and wellness space if the brand is truly committed to the vertical, although it remains to be seen whether consumers will latch onto the idea of visiting a Nike Studio for their daily workout. On the equipment front, could Nike become a true rival to established strength training brands like Eleiko and Rogue Fitness?

• 

  6. Peloton Announces Rebrand, New Strategic Vision

  Back in May, Peloton announced its intentions to become the fitness company for “anyone, anywhere,” looking to shed its perception as a “bike company” focused predominantly on wealthy consumers. 

  As part of a large-scale rebrand, Peloton launched a new fitness app with three subscription tiers, including a freemium option that offers more than 50 classes curated across 12 modalities for no cost. The Peloton App One and Peloton App+ tiers cost $12.99 per month and $24 per month, respectively. The connected fitness company also launched Peloton Gym, which offers at-home strength training workouts. 

  Why It Matters:

  Peloton CEO Barry McCarthy has said that the company wants to branch out beyond cycling workouts, becoming a more well-rounded digital fitness company that makes most of its money through content rather than hardware sales. As a result, Peloton has forged partnerships with top sports teams and leagues, universities and even hotel groups as the brand looks to increase its global recognition and drive users to its app. 

  What To Watch in 2024:

  So far, Peloton has struggled to translate its rebrand into financial success. In its most recent earnings report, Peloton lost paid subscribers, with the connected fitness company struggling to convert free app users into paying members. Peloton has one of the most loyal fanbases of any fitness company, although many of those fans are cycling diehards. It remains to be seen whether Peloton can bring new members into the fold by emphasizing other types of fitness content.

• 

  7. EGYM Raises $225M, Preps for IPO

  In July, fit tech company EGYM received €207 million ($225 million) in growth capital, closing a financing round led by Affinity Partners, a global investment firm launched by Jared Kushner, the son-in-law and former advisor to President Donald Trump. The funding will enable the Munich-based EGYM to prepare for an IPO, the company’s co-founder and CEO Philipp Roesch-Schlanderer has said.

  EGYM provides smart gym solutions, including software and fitness equipment, for more than 15,000 gyms worldwide, and is rapidly expanding its North American team. 

  With the investment, EGYM will also focus on further developing its digital solutions for health-focused workouts and expanding the EGYM Wellpass corporate health network, an area Roesch-Schlanderer has identified as critical. 

  Why It Matters:

  Funding has been harder to come by in 2023 due to macroeconomic conditions, but Affinity Partners’ investment in EGYM shows the promise of tech-enabled fitness. With even more resources, EGYM looks poised to extend its lead as the dominant fit tech provider on the market, potentially reaching even more gyms worldwide.

  What To Watch in 2024:

  Will EGYM’s impressive funding haul be a sign of things to come for fit tech companies or was the round more of an anomaly given the current economic outlook? The latter outcome is possible, as EGYM seems unique in its ability to offer software and hardware solutions under one brand. 

• 

  8. BowFlex, BODi Change Names To Spark Turnaround

  2023 saw a pair of down-on-their-luck fitness brands change their names in hopes of sparking a turnaround. In March, The Beachbody Company announced it would be known as BODi moving forward, a move co-founder and CEO Carl Daikeler said aligned with a shift in the company’s strategy toward inclusive fitness and wellness and away from the looks-based marketing that made the brand famous but has seemed to turn off modern consumers, especially Gen Z. 

  In the fall, Vancouver, Washington-based fitness equipment maker Nautilus changed its corporate name to BowFlex, rallying behind its most popular brand. As part of the rebrand, BowFlex introduced a new color scheme, marketing campaign and at-home equipment designed to target consumers in the connected fitness era. 

  Why It Matters:

  Two of the biggest fitness brands of the 2000s era have struggled in recent years, but they’re not going down without a fight. For both companies, the name change has been accompanied by a major rebranding effort that could fundamentally change the way each positions itself in the fitness and wellness industry. 

  What To Watch in 2024:

  Will the name-change tactic employed by BowFlex and BODi give other struggling fitness companies a blueprint to follow to regain relevance, or will it prove to be a cautionary tale for fitness and wellness brands looking to return to their glory days?

The post The Fitness & Wellness Moves That Defined 2023 appeared first on Athletech News.

Tonal, the smart home gym company, is hoping to lure in disenchanted Lululemon Studio members with a trade-in opportunity just as the athleisure company officially decommissions its connected fitness Mirror. 

The at-home gym brand launches the program on December 19th.

The savvy move aims to do more than replace the Mirror with a Tonal, but continue the sense of fitness community that Lululemon Studios cultivated, with former Mirror coach Lance Parker joining Tonal as a guest coach. Tonal teases that another Lululemon Studio favorite is also coming on board in the new year, but their identity is under wraps for now.

Qualifying consumers receive $250 off the purchase of a Certified Refurbished Tonal Trainer, the first 12 months of a Tonal membership for free ($719 in savings) plus the removal of a Mirror from their home for no additional cost. 

Lululemon Leaves Connected Fitness

Lululemon may be uber-successful at athleisure, but its connected fitness Mirror proved to be a $500 million misfire. 

In September, the company announced it would discontinue the connected fitness device before the end of the year and teamed with Peloton in a strategic five-year global partnership that saw the connected fitness company create exclusive digital fitness content for Lululemon Studio starting in 2024.

Tonal Embraces Hardware, AI

Tonal, meanwhile, has made key moves in the at-home fitness market. under the leadership of new CEO Krystal Zell, who took the reins in April at the same time as a fresh injection of $130 million in funding,

The company is actively using AI, with plans to leverage its capabilities for user personalization regarding suggested weights, dynamic weight modes and personalized content recommendations. As Zell told Athletech News in an exclusive interview, Tonal has five years’ worth of complete data collection on weight training that drives insight and workout design.

“We are very much focused on taking this incredible data set that we have, but making it useful for our members,” Zell said, adding that the data is anonymized. “It’s not about technology for the sake of technology. It’s all about how we can use this data to get our members better workouts with more results.”

The smart home gym company also expanded its in-store Nordstrom retail footprint this holiday season by selling Tonal and accessories on BestBuy.com to reach a wider audience. In another move this season, Tonal partnered with Extend to offer product production on its AI-powered strength trainer to enhance the consumer experience. 

Learn more about the Tonal trade-in program here.

The post Tonal Rolls Out Lululemon Mirror Trade-in Program appeared first on Athletech News.

Lululemon, having just pulled off the single biggest day in the history of its company with Black Friday, announced its third-quarter fiscal 2023 results, which CEO Calvin McDonald described as another strong quarter for the athleisure brand. 

The Vancouver-based company reported a net revenue increase of 19% to $2.2 billion when compared to Q3 of 2022 and expects net revenue for 2023 to be in the range of $9.549 billion to $9.584 billion, representing a growth of 18%. The activewear brand opened 14 net new company-operated stores during the quarter, ending with 686 stores.

“As we enter the holiday season, we are pleased with our early performance and are well-positioned to deliver for our guests in the fourth quarter,” McDonald said, adding that he’s energized by what he calls “significant opportunities” ahead for the leading activewear brand.

In October, Lululemon was added to Wall Street’s S&P 500 index, causing the activewear brand’s stock price to hit its highest level since December 2021. Lululemon’s shares hit a record high on Friday followng the brand’s Q3 results, which beat estimates.

McDonald touched on Lululemon’s successful Black Friday strategy, where the brand saw a significant increase in app downloads (roughly 250,000+) which allowed Lululemon fans to access special sales. 

Lululemon’s board also authorized a new stock repurchase program for up to $1 billion of the company’s common shares, which McDonald noted reflects the optimism in Lululemon’s growth trajectory.

The brand saw its women’s business increase by 19%, fueled partly by new products, such as the sort and form-fitting Wundermost bodywear. However, Lululemon reports that while its men’s line saw growth of 15% in the third quarter, overall brand awareness remains low (13% in the U.S., 12% in Australia and single digits outside of North America.) 

“Similar to during the COVID-19 period, we see that when there is some uncertainty in the macroenvironment, men can become a bit more conservative in their apparel purchases,” McDonald told investors.

The number of activewear brands targeting male consumers seems to be increasing, as seen with Rhone and Ten Thousand. Lululemon plans to boost its brand awareness with men and has been testing media-based campaigns in the U.S. — a strategy it plans to continue in 2024 when Lululemon launches a new men’s footwear line.

As for its international growth, Lululemon reports that all regions grew in “strong double digits,” with a 53% increase in China. 

Mostly Mum on Fitness

Despite a new high-profile 5-year partnership with Peloton, Lululemon execs didn’t focus on the arrangement on its recent call with investors, except to state that it will no longer produce content or sell Mirror hardware. Meghan Frank, Lululemon chief financial officer, noted a post-tax asset impairment and other charges related to Lululemon Studio, totaling $72.1 million during Q3.

Frank also shed light on Lululemon’s guidance outlook, reiterating that while the company is pleased with the trends seen at the beginning of the holiday season, Lululemon is mindful of the current economic landscape — one that has contributed to NY-based women’s activewear brand Bandier to offload its assets and IP. 

“The majority of the quarter remains in front of us,” she said. “We remain aware of the uncertainties in the macro environment, and we continue to plan the business for multiple scenarios.”

For Q4 2023, Lululemon expects net revenue to be in the range of $3.135 billion to $3.170 billion, representing growth of 13% to 14%.

The post Lululemon Shares Hit Record High Despite Activewear Uncertainty appeared first on Athletech News.

Bandier, a women’s activewear brand with five retail store locations and an ecommerce presence, is seeking a buyer for its assets, inventory, intellectual property and certain commercial real estate leases. 

Initially launched as a single retail shop in Southampton, New York, in 2014 selling apparel, footwear, and accessories, Bandier grew its retail footprint and online presence as A-listers such as Jennifer Aniston and style influencers became fans of its leggings, tank tops and other apparel offerings. 

As Bandier searches for a buyer to mitigate reported headwind factors such as supply chain challenges, the activewear brand is still operating and has rolled out holiday gift guides on its site and is active on its social media pages.

Bandier filed a notice with the New York State Department of Labor WARN Unit last month, indicating that 52 employees were laid off on Nov. 22, 2023. The brand cited economic reasons for the downsizing and noted that “the planned layoffs are expected to be permanent, but all employees are expected to be rehired by the new entity, Bandier ABC, LLC.”

Along with one remote employee, the WARN notice said the staff cuts occurred at Bandier’s NYC headquarters and its New York retail locations in Manhattan and Southampton.

Bandier has two other retail locations in Dallas and Los Angeles.

The brand also began selling its private-label brands on Amazon in 2021— a decision that founder Jennifer Bandier said at the time would allow the brand to “meet the demands of the activewear boom.”

Earlier this year, Bandier partnered with Head Sportswear to capitalize on the pickleball surge, offering tennis and pickleball apparel collections

The company requests that offers be submitted by 5 p.m. on Dec. 18, 2023. Development Specialists, Inc. (DSI) is handling the sale.

Can Activewear Brands Weather the Storm?

Bandier’s strategy – selling its assets to circumvent bankruptcy – follows a recently issued report by McKinsey that sounds the alarm for the fashion industry.

Opening the report with “storm clouds are gathering,” McKinsey warns that fashion companies will face economic headwinds, shifts in technology and an “evolving competitive landscape” in 2024. 

Not intending to be entirely gloomy, the management consulting company identifies technical outdoor clothing as a top trend in the new year, noting that consumers are increasingly embracing healthier lifestyles. 

Despite economic challenges, some brands, like Vancouver-based Lululemon, continue to prove their resiliency. The activewear brand joined the prestigious S&P 500 this fall, with shares rising over 10% in response. Lululemon also inked a five-year deal with Peloton to become the provider of Peloton-branded apparel in exchange for exclusive digital fitness content for its Lululemon Studio. 

Rhone, a premium activewear brand backed by NBA team owners and former NFL players, also made headlines this season as its founders reclaimed the brand from private equity firm L Catterton. Based in Connecticut, Rhone is accelerating store openings and is adding a women’s collection in 2024.

As for men’s activewear, Ten Thousand, founded by former professional soccer player and venture capitalist Keith Nowak, raised $21.5 million in a Series A this year and landed a sponsorship deal with luxury lifestyle and wellness operator Life Time.

The post Bandier Seeks Buyer for IP, Assets Amid Activewear Challenges appeared first on Athletech News.

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.

The post Lululemon To Join S&P 500, Stock Surges in Response appeared first on Athletech News.

Vuori, the California-based premium activewear brand, is in talks with investment bankers for a potential IPO in 2024, according to a report from Bloomberg News. The brand achieved a $4 billion valuation with a $400 million investment from SoftBank Vision Fund 2 in 2021. This was followed by a $45 million investment from Norwest Venture Partners in 2019. 

Vuori has been steadily operating under the radar and has been quietly rivaling Lululemon, its closest competitor in the premium activewear apparel space; however, its unicorn status and recent news of a potential IPO have drawn attention to the brand.

Vuori – Finnish for “mountain” – was launched in 2015 by Joe Kudla, who was inspired to create the brand after noticing a void in the market for a premium product that merged functional performance with a casual and effortless aesthetic. Vuori was inspired by the Southern California lifestyle – and integration of fitness, yoga, surf and life – with priorities on versatility, comfort and a modern fit.  

The Next Big Name in Activewear?

When Vuori launched, it carried only men’s apparel. The company started with shorts, but its “hero product” was its joggers, which retail for $98. Vuori prices are slightly lower but comparable to Lululemon; for example, its men’s joggers range from $98 to $128 while Lululemon’s men’s joggers range from $118 to $168. Vuori launched women’s apparel three years later with a performance jogger in 2018. While the company’s roots were in men’s apparel, the split in sales between men’s and women’s is fifty-fifty today. Vuori’s product catalog also includes accessories (socks, bags, headwear, and yoga accessories). 

Vuori is focused on sustainability through material innovation and eliminating plastics, which will be important to investors ahead of a potential IPO. The company has been a Climate Neutral Certified label since 2020, and in August 2023, Vuori introduced “BlissBlend,” a technical performance material that includes multidimensional stretch with a weightless feel; BlissBlend uses Lycra fiber technology made from 75 percent recycled materials. In January 2021, the company announced that it planned to eliminate 80% of plastics from its supply chain.

Selling to Gyms & Studios

A brand differentiator for Vuori is its diversified distribution strategy. When the company launched, it sold its products to fitness studios as a customer acquisition strategy. The company still sells through wholesale channels and brand partners including Equinox and other fitness studios, as well as to Nordstrom and REI in the U.S. The brand is also available in the U.K. through wholesale partners including Barry’s, Cotswolds Outdoors, Harrods, Equinox and Selfridges, at Breuninger in Germany, and Tmall in China. Vuori also reaches customers in Singapore, Mexico, Hong Kong and the Middle East through its brand websites.

The company also has aggressive plans to expand its store footprint, with plans to open 100 locations in the U.S. by 2026; Vuroi also reported that expansion outside of the U.S. is a key strategy for furthering the brand’s growth and profitability. Vuori has 43 stores with nearly half of its store fleet located in California and in major cities including Boston, Chicago, Dallas, Denver, Las Vegas, Nashville, New York City and Seattle. The company has launched two stores internationally – most recently a popup in Shanghai this past summer and one in London’s Covent Garden in September 2022.  

An IPO would enable Vuori to expand its retail network and international presence.

The post Activewear Brand Vuori Said To Be Mulling IPO appeared first on Athletech News.

Lululemon is reducing its workforce again, this time cutting 120 employees across its Lululemon Studio team. The layoffs follow Lululemon’s new deal with Peloton, which will see the connected fitness company create exclusive digital fitness content for the athleisure brand in return for Lululemon creating Peloton-branded apparel.

The athleisure brand’s digital fitness unit, Lululemon Studio, laid off 100 employees earlier this summer, perhaps in a preview of what was to come.

The downsizing comes after Lululemon confirmed it’s finally giving up on its connected fitness Mirror, which will be discontinued before the end of the year.

Looking to strike hot during the at-home fitness boom, Lululemon acquired the Mirror for $500 million in 2020, an investment that soured before becoming a costly albatross. Despite trying to offload the connected fitness mirror at a steep discount, Lululemon had been unable to find a buyer for the hardware.

Once competitors and formerly locked in litigation, Lululemon and Peloton now plan to work together to reach their combined 20 million members and guests, engaging their global communities with technical athletic wear, real-life experiences, special programming and original content. The deal also sees some select Peloton instructors becoming Lululemon ambassadors.

The post Lululemon Lays Off 120 More Staffers Following Peloton Deal appeared first on Athletech News.

Update: The headline in a previous version of this article misstated the nature of the announcement made by Xponential and Lululemon. The sides will be continuing their retail partnership. Peloton is now the exclusive content provider for Lululemon.

Although Lululemon has forged a five-year strategic partnership with Peloton and is phasing out its connected fitness Mirror, the brand confirms it is continuing its relationship with Xponential Fitness.

“While Lululemon will strategically move away from providing all partner content on Lululemon Studio after October 31, 2023, we very much look forward to continuing partnering with Xponential Fitness and their local studios around the world,” said Celeste Burgoyne, president of the Americas and global guest innovation for Lululemon.

“We are pleased to continue our successful retail partnership with Lululemon, and we look forward to deepening and expanding our collaboration,” said Anthony Geisler, founder and CEO of Xponential Fitness.

The news comes on the heels of Xponential Fitness sharing some major news of its own, introducing a virtual and mixed-reality app on Meta’s new Quest 3. The deal with Meta provides Quest users with access to the boutique fitness franchisor’s popular brands while delivering an authentic virtual fitness experience.

Lululemon and Xponential renewed and expanded their partnership earlier this summer, giving fitness enthusiasts access to additional Xponential-branded workouts from Pure Barre, Rumble Boxing, AKT and YogaSix on the Lululemon Studio platform.

Xponential’s partnerships have proven successful, with the company having inked deals with LG, Aktiv Solutions and Princess Cruises. In an exclusive interview with Athletech News, Xponential’s president, Sarah Luna, confirmed that the boutique fitness franchisor will continue to leverage its partnerships to increase brand awareness and drive new members into franchise studios.

On Wednesday, Lululemon and Peloton announced a five-year strategic partnership focused on content and apparel. As part of the deal, Lululemon will become Peloton’s apparel partner, and Peloton will create exclusive digital fitness content for Lululemon Studio starting early next year. Lululemon is officially discontinuing Mirror as part of the deal.

The post Xponential, Lululemon Reaffirm Retail Partnership appeared first on Athletech News.

After abandoning the connected fitness ship and pivoting to app-based experiences, Lululemon and Peloton have teamed up in a five-year global partnership to reach a combined 20 million members and guests. Lululemon is also finally shutting down its connected fitness Mirror, which it will discontinue before the end of the year. 

The news has caused shares of Peloton to soar despite recent issues surrounding recalls and a decline in subscribers.

As part of the deal, Lululemon will become Peloton’s apparel partner, and Peloton will create exclusive digital fitness content for Lululemon Studio starting early next year.

Times have clearly changed for both companies, especially in terms of apparel. In 2021, Lululemon accused Peloton of patent infringement regarding its apparel designs. The two ended up negotiating a mutually agreeable settlement last year.

The partnership could prove lucrative, allowing each company to focus on its original core ambitions: Lululemon with its popular apparel and Peloton’s expertise in fitness. Each had tried to push into the other’s lane, which didn’t take off for either company. 

Mirror, Lululemon’s $500 million attempt at connected fitness, ended up underperforming, resulting in a $443 million impairment charge. Despite offering it for sale at a steep discount, Lululemon has reportedly been unable to find a buyer for Mirror. Lululemon Studio, the brand’s digital fitness unit, felt the effects, with 100 Studio employees receiving pink slips this summer. 

Peloton, on the other hand, slashed its sales projections for its apparel line in 2022. 

Now, the apparel and fitness giants plan to engage their global communities with technical athletic wear, real-life experiences, special programming and original content in the U.S., Canada, the U.K., Germany and Australia. 

The deal also sees some select Peloton instructors becoming Lululemon ambassadors.

“We’re excited to collaborate with Peloton to connect with our highly engaged communities across North America and in markets around the world,” said Celeste Burgoyne, president of the Americas and global guest innovation for Lululemon. “As a leader in technical athletic apparel, this partnership will create a powerful product offering for Peloton members and fans. Our two companies share a vision to advance well-being through movement, and this partnership ensures our Lululemon Studio Members will have access to the most expansive and dynamic offering of fitness content possible.”

Starting October 11, 2023, Lululemon’s co-branded apparel product lines will be available at Peloton’s retail stores and online in the U.S., U.K. and Canada before becoming available in all five of Peloton’s global markets by March 2024.

The apparel will launch over three new events during Peloton on Tour, debuting during an activation in Chicago starting on October 5. 

On November 1, all-access members of Lululemon Studio will be able to access Peloton’s classes as Lululemon ends its digital app-only membership tier. Content will be updated weekly on the Studio device and app, with new Studio content produced by Lululemon through spring 2024. Those who sign up for Lululemon’s free Essential membership program can also access exclusive Peloton content.

The post Peloton, Lululemon Partner on Content as Mirror Gets the Ax appeared first on Athletech News.

Lululemon has reported strong second-quarter financial results for fiscal 2023, with an 18% revenue increase to $2.2 billion, but the company didn’t share any updates on its struggling connected fitness unit.

The Vancouver-based activewear company opened ten new stores in Q2 and says it’s well-positioned for the second half of the year, expecting revenue growth in the 17% to 18% range. 

“Our Q2 results highlight the ongoing strength of the business amid a dynamic operating environment,” said CEO Calvin McDonald. “I am proud of how our teams continue to deliver on our vision and offer an exciting pipeline of new products and experiences to our guests around the world. Our continued ability to gain market share and bring new customers into the brand illustrates the significant runway ahead for Lululemon.”

Lululemon credits its continued success to its “Power of Three x2” growth plan, which concentrates on product innovation, guest experience and market expansion, and calls for a doubling of its $6.25 billion in revenue from 2021 to $12.5 billion by 2026. 

Although Lululemon impressed investors with its recent earnings, the company didn’t reference any news regarding its struggling Mirror or Lululemon Studio, its connected fitness unit which underwent layoffs earlier this summer.

The Power of Technical Athletic Apparel  

The activewear company experienced double-digit growth across women’s, men’s and accessories, with women’s increasing 16%, men’s up 15%, and accessories climbing 44%.   

As Lululemon looks to the second half of the year, the activewear company will launch a new women’s collection this fall and, in Q3, plans to expand its outerwear offerings. In the fourth quarter, the company will launch a new performance fabric designed for cold weather runs.

Lululemon has consistently worked on strengthening its brand awareness and demonstrated success in international markets. Initiatives such as the Get Into It campaign and its Further initiative have helped drive awareness. 

Most notably, Lululemon’s highly successful Dupe Swap event, held in Los Angeles, encouraged consumers to trade their lackluster leggings for a pair of Lululemon’s famed Align leggings. According to McDonald, the event generated over a billion earned media impressions and was widely covered by both national and international media outlets.

The activewear brand confirms several activations and initiatives are planned for the third quarter to continue driving awareness, support product launches and create buzz for the holiday season.

New Heights in Greater China

While net revenue increased 11% in North America, Lululemon reported a 52% increase internationally. China continues to be a win for the activewear company, with a 61% revenue growth. 

The brand also identified “ample opportunity” to drive growth in Australia, and opened its first store in Thailand this summer. 

The post Lululemon Has Strong Quarter but Silent on Connected Fitness appeared first on Athletech News.

Many pregnant women focus their energy on how to provide nutrition and sustenance for their growing babies, often forgetting to take care of themselves. To combat such behavior and promote a more holistic approach to pregnancy, MyFitnessPal has launched a weeklong program in partnership with fitness expert Deja Riley called “Eating for Pregnancy.” The program offers daily tips, food ideas and recipe recommendations from the company’s registered dietitians and mothers. 

Deja Riley, a former professional dancer and a current inclusion, diversity, equity and action (IDEA) representative for Lululemon, is committed to reframing the focus on mothers.

“Throughout pregnancy, it’s important to track and follow the baby’s progress but it’s also important to put some of the focus back on mom – making sure we’re taking care of ourselves properly, from nutrition to simply carving out time for self-care,” Riley said. “MyFitnessPal makes it easy to track food choices, water intake and movement and doing so has helped me identify choices that directly impact my mood and energy.”

Eating for Pregnancy helps users navigate common issues during pregnancy, like morning sickness, heartburn, constipation, exercise, fatigue and cravings. Changing hormones can influence energy, mood, and symptoms, while iron-packed prenatal vitamins can slow down digestion.

Riley also shares many of her favorite modified fitness movements as part of the program so women can stay active and healthy during pregnancy. 

“This isn’t an eating program. It’s a plan that offers real-life strategies to help navigate a time that can feel both overwhelming and exciting, not only for those who are pregnant for the first time, but even experienced moms, because every pregnancy is unique,” said Stephanie Nelson, a MyFitnessPal in-house registered dietitian.

The Eating for Pregnancy plan is now available on MyFitnessPal and can be downloaded for free via the Apple App Store and Google Play Store.

The post MyFitnessPal Launches Pregnancy Nutrition Program appeared first on Athletech News.

Echelon, a maker of connected fitness equipment and workout gear, has added a strength training machine, the Echelon Strength Pro to its portfolio. The new hardware is designed for commercial and at-home gyms, delivering live and on-demand instruction via the Echelon Fitness app.

The new fitness hardware is available for pre-sale and is expected to ship in early October for $4,999.

The Echelon Strength Pro system features a 24-inch HD embedded touchscreen, digital resistance and multi-plane adjustability and offers guided programming and an intuitive touch so fitness enthusiasts can get the most out of their workout. There are also four interchangeable accessories such as handle grips, straight bar, rope grips and ankle straps.

The new smart system boasts multiple resistance modes and can customize and save workouts. Echelon says no new subscriptions are needed, as the fitness content is part of the existing membership plan for active members.

“Engaging in a consistent fitness routine is notoriously difficult and for those interested in strength-training, traditional weights with limited instruction can feel overwhelming, uninspiring or inaccessible,” said Lou Lentine, founder and CEO of Echelon. “The Strength Pro is the result of thousands of hours of R&D, receiving our internal excellence seal of approval.” 

Lentine added that the company believes Echelon has built the best product in the market, confident in the new equipment despite big-name fitness companies like Peloton and Lululemon transitioning away from hardware and leaning into content as the connected fitness market struggles.

“The Strength Pro will provide an amazing workout, with users being able to choose from a variety of options such as freestyle workout, prebuilt instruction-led workouts, custom workouts or following our trainers in a full session,” Lentine said. “This is an accessible solution for owners and properties – from multi-family complexes to boutique gyms to hotels – to deliver that high-end, well-rounded workout without worrying about noise levels, product durability or safety.”

The post Can Echelon Buck Industry Trends With its New Connected Strength Machine? appeared first on Athletech News.

Lululemon is placing the importance of mental wellness in the spotlight, having announced the formation of a mental well-being global advisory board.

The newly formed board will assist Lululemon in developing best practices and influencing mental well-being outcomes for employees and communities.

The activewear company says the findings from its 2022 Global Wellbeing Report demonstrate the need for investment in mental wellness, with only 29% of respondents revealing they have a strong sense of wellbeing across physical, mental and social areas.

Lululemon’s advisory board includes 11 leaders that represent the athletic apparel company’s key global markets in the well-being space and is chaired by Susan Gelinas, chief people and culture officer, and Nikki Neuburger, chief brand officer, two members of Lululemon’s global senior leadership team.

In an effort to destigmatize the need for well-being assistance, the board members will raise awareness and provide tools and resources to help guide employees on their mental well-being journeys. 

“At Lululemon, we believe everyone has the right to be well and the path to wellbeing is only possible when the tools, support, and resources are accessible to all,” Neuburger said. “We are thrilled to continue to expand our investment and work toward improving mental well-being outcomes and to collaborate with such a talented group of experts to elevate and support individual and community wellbeing globally.”

The initial focus of the board will be on Lululemon’s annual global well-being report, employee mental wellness offerings, social impact practices and initiatives and mental well-being programming. 

The board’s formation comes on the heels of a recent round of layoffs at Lululemon Studio, cuts that impacted roughly 100 employees and seemed to be largely driven due to its connected fitness mirror, which Lululemon acquired in 2020 for $500 million.

Hoping to capitalize on the at-home fitness surge during the pandemic, Lululemon soon slapped a “for sale” sticker on Mirror but has faced ongoing challenges finding a buyer for the underperforming fitness hardware, despite offering it at a deep discount. Much like Tonal has experienced, demand for at-home fitness hardware appears to have hit a lull. Financial filings reveal Lululemon currently values Mirror at just $57 million after taking out a $443 million “impairment charge” related to assets and goodwill associated with the connected fitness mirror.

As for the summertime layoffs, a Lululemon spokesperson told Athletech News that the activewear company is restructuring Lululemon Studio and fully integrating the division into the rest of the company. 

“This shift, as well as our evolved strategy from a hardware-centric offering to one that is also focused on digital app-based services, enables Lululemon to better drive long-term value through our membership offerings and create deeper connections with our community of guests,” the spokesperson said in a statement.

Like Peloton, the activewear company is moving beyond a hardware-centric offering in favor of a $12.99-a-month digital app allowing members to experience fitness content with a ‘wherever, whenever’ approach to workouts. 

The company recently renewed its partnership with Xponential Fitness, which saw additional Xponential-branded workouts from Pure Barre, Rumble Boxing, AKT and YogaSix available on Lululemon Studio, which users can access without Mirror.

Lululemon’s next earnings report is scheduled for Sept. 7.

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