Mirror basically makes a mirror that works as a giant iPad for fitness classes. The Mirror platform has a “massive TAM [total addressable market], significant revenue synergies and lower customer acquisition costs” that should produce high growth and returns, according to Cowen. Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. Follow him on Twitter @jswartz. MIRROR offers the world’s first nearly invisible, interactive home gym featuring live and on-demand fitness classes in a variety of workout genres. A brand now owned by the fitness apparel company, lululemon, Mirror sells a $1,500 smart workout machine that aims to bring the advantages of a brick-and-mortar fitness studio into the comfort of your home. Raymond James rates Lululemon stock strong buy with a $400 price target, up from $335, saying the company is poised for acceleration in 2021 for a … Jon has covered technology for more than 20 years, and previously worked for Barron's and USA Today. Last quarter, lululemon athletica (NASDAQ:LULU) got in the game with the $500 million acquisition of Mirror, a maker of premium digital workout displays, and it … Shares of Lululemon are up 27% in 2020. Before it's here, it's on the Bloomberg Terminal. In a statement, Lululemon Chief Executive Calvin McDonald said the acquisition of Mirror will "accelerate the growth of personalized in-home fitness." My parent had early-onset Alzheimer’s, and I’m afraid I will get it too. $74.5M. Jamel Toppin for Forbes. Headquarters. How much money was President Trump’s Twitter account worth? Tesla Inc. got a another bullish endorsement Friday from Wedbush's prolific analyst Dan Ives, who raised his stock price target by 33%, but he still won't recommend investors buy the stock. The Mirror acquisitions adds “yet another way that Lululemon will personally engage with customers and provides opportunities for personal interactive commerce for consumers as well.”, Poser sees “strong synergies” becoming “evident over the next one to two years.”, Investors have been looking for further expansion beyond Lulu’s current addressable market, and with Mirror it now has an avenue to bring new users into the “experiential sweatlife, to increase consideration and conversion among existing guests (and their families/roommates), and to further enhance the company’s experiential membership program still in very early days.”, “The widening TAM with the Mirror acquisition appears very compelling in [the] context of global health, end-to-end connected omnichannel ecosystems, and augmented reality deployment.”. SPX, Mirror has developed weekly live classes and thousands of on-demand workouts as well as immersive one-on-one personal training. The Mirror purchase transforms Lululemon from a traditional retailer into a subscription-based firm with strong recurring revenues. Have a confidential tip for our reporters? There are six types of retirees — which are you. In a statement, Lululemon Chief Executive Calvin McDonald said the acquisition of Mirror will "accelerate the growth of personalized in-home fitness." With about 50% of overlap between Mirror and Lulu customer bases, Kernan sees “significant opportunity to expand awareness of Mirror and build membership and product conversion/commerce for Lulu.”. Rates outperform, price target to $335 from $311. In June this year, Lululemon acquired Mirror, a lifestyle fitness company for $500 million. About MIRROR Stock. Duffy is hopeful that Mirror will “further improve” Lulu’s digital competencies, and he appreciates its efforts to reach “new and existing customers on a new platform that has seen solid traction particularly throughout the pandemic,” with total downloads up 62% since March 1. New York NY, US. “Recognizing the Work Out From Home surge, the idea behind the acquisition makes perfect sense,” however, it “remains to be seen” what each company ultimately does for each other. Shares gained as much as 8%, the biggest intraday advance since April 17. Why Its Stock Is Rising. Lululemon. However, LULU stock caught a bid on June 30, on news that it will acquire Mirror … Lululemon Athletica shares rose the most in more than two months on Tuesday after the yoga-wear maker agreed to buy Mirror, a producer of in-home fitness equipment, for $500 million. Copyright © 2021 MarketWatch, Inc. All rights reserved. 7 Tech Stocks to Buy for a Very Happy Holiday Season Lululemon is beating earnings estimates, even during the pandemic, and keeps expanding its reach. Lululemon Athletica stock is rising after hours, following news that the athletic apparel maker is acquiring a … The broader S&P 500 index Founded. is up 3% this year. Lululemon Shares Jump After $500 Million Deal To Mirror Mirror, one of the key challengers to Peloton Interactive in the at-home fitness market, will be … -0.72% Lululemon Buys Peloton Competitor Mirror. -0.93% On June 29, Lululemon Athletica (NASDAQ:LULU) announced a strategically important move to acquire MIRROR for $500 million. The deal builds on a business relationship that began in mid-2019, with an initial investment in Mirror by Lululemon. Read More: Lululemon Hits Record on High Hopes for Athleisure Trend. Buzzy exercise startup Mirror agreed to sell to Lululemon… The S&P 500 Index has dropped 5.3% thus far this year. A good example is Lululemon's recent acquisition of Mirror, which competes with Peloton in the $500 billion global market for physical activity. This is Lulu’s first acquisition. The addition of Mirror offers Lulu a “place in the home with its hardware + content,” as well as “daily mindshare and a platform for its 2000+ ambassadors and events,” Cowen added. Lululemon’s acquisition of Mirror, the home-fitness startup that streams workouts through a mirror-like device, for a reported $500 million last week, is pure omnichannel retailing gold. However, LULU stock caught a bid on June 30, on news that it will acquire Mirror for $500 million.Source: Sorbis / Shutterstock.com Shares closed off the highs, but still climbed 6% on the day. Mirror Home Gym review: This $1,500 Peloton rival is practical, but imperfect Mirror is a world of strenuous workout classes that looks like home decor The … Fitness Technology Startup. Mirror has a “lean” financial model and a “multi-faceted” value proposition compared to others in the At-Home Fitness market. The COVID-19 earnings recession is expected to remain, but an end may be in sight, 4 financial resolutions that you can set (and actually keep) in 2021. ... Having said that, if the stock … Analysts are bullish on Lululemon Athletica Inc. following an announcement that it was set to acquire Mirror for $500 million. The stock has outperformed in 2020, having risen 36% year to date, thanks to the popularity of athleticwear while people work at home during the Covid-19 pandemic. Lululemon stock rose Tuesday after Deutsche Bank suggested that the yoga apparel and accessories maker might have had a stronger holiday season than … The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. MIRROR Stock. Here’s what analysts are saying about the acquisition: “We see a large base of consumers willing to pay for premium fitness/lifestyle content and a financial model that likely has meaningful opportunity to leverage fixed costs as it scales.”. With the use of a companion app, it streams live and on-demand fitness classes directly onto its reflective surface. Even before MIRROR, Lululemon has seen impressive gross margin expansion since FY2016 (56% vs. 48%), and MIRROR could catapult gross margins to new highs. Tesla’s new $950 stock price target at Wedbush is the highest on Wall Street, but the analyst still won’t say buy, Plug Power stock set to snap long win streak after J.P. Morgan says it is 'fully valued', Fear of new virus variant pushes U.S. toward more genomic sequencing. Total Funding. Lululemon (NASDAQ: LULU) is seeing an increase to LULU stock on Tuesday after announcing plans to purchase startup Mirror for $500 million. +13.05 +0.35% Lululemon Athletica shares rose the most in more than two months on Tuesday after the yoga-wear maker agreed to buy Mirror, a … Lululemon Athletica Inc. is buying at-home fitness company Mirror for $500 million, a deal that aims to capitalize on pandemic-fueled upheaval in the fitness and retail industries. Mirror founder Brynn Putnam, as seen in our Forbes magazine feature on the startup. rose 3% in after-hours trading Monday following its announcement that it has agreed to acquire Mirror, an in-home fitness company that created an interactive workout platform, for $500 million. The Mirror lets you sync your music via Bluetooth and measure your heart rate. Home-fitness company Mirror, which sells a full-length mirror with an interactive display, featuring a camera and speakers, has raised $34 million from investors including Lululemon. 2016. Notable Investors. What is The Mirror? How do I split my estate between my girlfriend and daughter? Less than two feet of wall space becomes your personal fitness studio; and when you’re not using it to work out it’s a polished, functional mirror. The Mirror is the nearly invisible home gym that transforms less than 2 feet of wall space into a cardio class, yoga studio, boxing ring, and so much more. LULU's deal with Mirror provides a catalyst for both entities to execute their existing long-term growth plans. LULU, Lululemon Athletica Inc. (LULU) announced yesterday that it will be acquiring the at-home fitness company Mirror for $500 million. Summary. Norway Raises Concern Over Vaccine Jabs for the Elderly, Edmond de Rothschild Holding’s Chairman Dies at 57, Norway Warns of Vaccination Risks for Sick Patients Over 80, Inside Cyberpunk 2077's Disastrous Rollout, Los Angeles Covid Cases Top 1 Million as Outbreak Worsens. Jon Swartz is a senior reporter for MarketWatch in San Francisco, covering many of the biggest players in tech, including Netflix, Facebook and Google. Peloton and Lulu customers likely share a “meaningful overlap,” which to Siegel suggests that Lulu’s ability to “reach and grab the incremental At-Home fitness customer away from PTON could be meaningful.”, “We love the brand, but are wary that sales and margins are approaching a crossroads.”, First-ever acquisition for LULU sends shares climbing, Mirror has ‘massive’ total addressable market, Cowen Says. “The Mirror purchase may expand Lululemon’s digital business and extend its reach with stay-at-home consumers, whose numbers have grown since Covid-19.”, “Mirror’s subscription workouts provide recurring revenue and complement Lululemon’s loyalty program.”. Lulu’s “best-in-class” liquidity positioning will be sufficient to fund the transaction and still leave “ample room” to support business operations. Mirror is an interactive workout platform that looks like a mirror when it isn’t in use, but becomes a screen showing fitness classes and more when activated. 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