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Athletic apparel retailer Lululemon is acquiring the in-home fitness startup Mirror for $500 million, marking its first acquisition with a bet that more people are going to be exercising in their living rooms.
Mirror does more than let you know how good you look in your new Lulu leggings. The company offers live classes weekly through its wall-mounted mirror device in addition to on-demand workouts and one-on-one personal training sessions.
One mirror costs about $1,495, and subscribers pay and additional $39 per month to stream the classes and access the on-demand workouts. The price tag alone is enough to make you sweat, but Lululemon is betting their customers will be willing to shell out the cash as gyms remain closed and people get tired of their socially distant walks around the neighborhood.
And they’re probably right. The Peloton indoor bike has been a pandemic superstar—its stock is up nearly 300% since March. Peloton’s success is likely a reflection of changes in consumer habits that will greatly benefit Mirror (and Lululemon) going forward.