Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, July 3, 2020

Article Excerpt

LULULEMON ATHLETICA, $304.77, symbol LULU on Nasdaq, is a designer and retailer of yoga-inspired athletic clothing and accessories, including pants, shorts, tops, and jackets. The company mainly caters to women, but also has men’s offerings. Lululemon sells under the lululemon athletica and ivivva athletica brand names. It sells its products mostly online and through the company’s retail stores (489 locations in Canada, the U.S., Australia, the U.K., Singapore, Hong Kong, and so on). This week, Lululemon agreed to buy at-home fitness company Mirror for $500 million. Its primary offering is also called Mirror—a $1,495 piece of equipment that includes a camera, speakers and a reflective screen. This lets users see both a remote trainer and their own form. Like Peloton, whose exercise bikes go for a much more expensive $2,245, Mirror charges a $39 monthly fee for a library of exercise classes and live workouts, and an additional fee for one-on-one training. The acquisition should be a good fit for Lululemon. Mirror offers…

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