|Bid||313.81 x 800|
|Ask||314.21 x 900|
|Day's range||308.19 - 317.97|
|52-week range||128.85 - 324.76|
|Beta (5Y monthly)||1.08|
|PE ratio (TTM)||71.26|
|Earnings date||03 Sep 2020 - 07 Sep 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||320.74|
Lululemon (LULU) closed at $314.39 in the latest trading session, marking a -0.26% move from the prior day.
(Bloomberg Opinion) -- When you return to the gym, your workout will be noticeably different than before the coronavirus lockdown. Don’t plan on pumping iron for more than an hour, or taking a shower. And you can probably forget those trendy boxing classes that have you making contact with your fellow gym-goers.Welcome to the new world of fitness, which will be characterized by social distancing, obsessively wiping down equipment and, for those who don’t want to brave the gym, sessions with a virtual coach on a Peloton bike at home.The Covid-19 pandemic has hit something that we largely take for granted: our health. So people are now likely to spend even more of their incomes on well-being, including staying in shape. But with a plethora of choices, from Zoom yoga to ballet barre via Instagram Live, not all of this money may find its way into the traditional fitness sector.That is likely to lead to a shakeout of an industry that has seen the number of global facilities roughly double over the past 15 years. Many clubs could now close or shrink. Those best placed to survive are the trendy boutiques that can successfully pivot to providing digital content and the no-frills operators that can appeal to cash-strapped fitsters. Some fitness fans can’t wait to get back to the gym. For others, being in close proximity to other people engaging in sweaty exercise is the last place they will feel comfortable. And for now, workout chains remain closed in some parts of the U.S. Clubs in England will be able to open from July 25. Where gyms are trading, they’re limiting the number of people inside at any one time and offering “busyness trackers” on their apps, so customers can decide the best time to visit. At peak hours, people may be asked to book ahead of time, or keep their workouts to an hour. As for showers it’s a mixed picture, depending on particular clubs and locations. Many people are choosing to get changed at home anyway.For gyms, in addition to contending with costly measures to contain the spread of the virus and keep customers feeling safe, it’s a changing landscape in terms of where their customers are and what they may want.Because many fitness centers are located in business districts, there may be far less demand when they reopen as working from home becomes entrenched. Virgin Active, owned by investment holding company Brait SE, whose clubs are mostly in metropolitan areas, looks particularly exposed here. And the new routines people have embraced while at home may lend themselves to working out in one’s kitchen or bedroom, rather than going to the gym at all. Consequently, clubs could face a wave of cancellations.Already, months of closure and higher reopening costs have taken their toll. Bodybuilder favorite Gold’s Gym International Inc. and 24 Hour Fitness Worldwide Inc. have filed for bankruptcy protection. But it is not just the legacy gyms, already caught in the ultimate barbell economy between chic boutiques and budget operators, that are feeling the burn.The boutiques, such as those that specialize in cycling, yoga or Pilates, face unique and acute challenges. The economics of many of these businesses are built around cramming lots of class participants into a tiny space — the kind of set-up people are likely to want to avoid.These fitness outposts are experimenting with ways of hanging onto their members. In a particularly fanciful example, SoulCycle Inc. is offering some outdoor classes in the Hamptons this summer that cost $50 for a single class. In such a posh location, there may be plenty of takers, but that’s hardly a model that can be replicated across the country. And outdoor classes will lose their appeal in the dead of winter.That is why some gyms, both boutiques and big-box outlets, are turning to digital content. Yogaworks Inc., for example, is live-streaming more than 100 daily classes from teachers at their studios all over the U.S. If this becomes really popular, it’s not hard to imagine the company needing to upend its business model, perhaps by reducing its roster of instructors, closing underperforming brick-and-mortar studios and hiring more technologists.Going online is far from a sure bet. It’s a highly competitive space that includes everything from free workouts on YouTube to Nike Inc.’s activity app and subscription programs like Glo and Daily Burn. In the U.K. alone, David Minton of the Leisure Database Company said he counted more than 600 Instagram Live workout classes in one day.It also puts operators in more direct competition with trendy home-workout programs such as the Mirror, which was just acquired by yoga-wear maker Lululemon Athletica Inc. for $500 million, and Peloton Interactive Inc., which has seen such explosive demand for its stationary bikes that it paused advertising back in March while it moved to accelerate its supply chain.The budget sector, which has been booming on both sides of the Atlantic, is not immune to the new pressures either. It faces a future with higher hygiene-related costs, such as the more regular and intensive cleaning of equipment. These may be difficult to accommodate when clubs are typically charging only about 20 pounds ($25) a month. Even so, companies such as Planet Fitness Inc. in the U.S. and Basic-Fit NV in Europe, as well as U.K. operators The Gym Group Plc and Pure Gym Group Plc, are probably best placed. Their clubs tend to be large, and many are located in suburban areas. In some cases, members are younger, and so may be less cautious about coming back. Pure Gym found that when its clubs reopened in Switzerland, people under 30 were three times more likely to return than those over 50. Yes, some people may ditch their subscriptions as the hard economic impact of the lockdowns hits. But no-frills clubs may also benefit from cash-strapped fitness fans trading down.The result is that even the most nimble, well-situated competitors will have to work up more of a sweat to compete in the Covid-19 era. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
On a recent conference call, management provided details on why they were so interested in acquiring the digital fitness platform.
Shares of lululemon athletica (NASDAQ: LULU) gained 34.7% through the first six months of the year, according to data provided by S&P Global Market Intelligence. Lululemon entered the year with revenue up 21% and earnings per share up 28% in fiscal 2019. Store closures around COVID-19 initially sent the stock down in March, but investors anticipated Lululemon would be fine, especially given the investments in the e-commerce business, which made up nearly a third of its sales last year.
MIRROR brings a subscription revenue stream and plenty of cross-sell opportunities between the two fitness brands.
Nike (NYSE: NKE) posted robust growth in its digital business last quarter, but it wasn't enough to offset the losses at physical stores. Overall, total revenue dropped 38% year over year due to store closures. During the conference call, management laid out a long-term growth roadmap, outlining specific areas where Nike will be investing during this downturn.
Stocks rallied into the close Tuesday to cap off the best second quarter for blue-chip equities since the S&P 500 was created in 1957.
The Nasdaq had a good Tuesday, celebrating an upbeat mood among investors. The advance for the Nasdaq was broad-based, but there were still a couple of stocks that stood out. Athletic apparel specialist lululemon athletica (NASDAQ: LULU) made a smart strategic move to try to maintain its positive momentum in recent months.
Lululemon is paying $500 million to acquire a home fitness startup, India bans TikTok and Amazon Prime Video is the latest streaming service to add a co-viewing experience. Although there's stiff competition in the category of connected fitness slabs, including Tonal and Tempo, Mirror continues to be the biggest name of the bunch. A growing number of internet service providers in India have started to block their subscribers from accessing TikTok a day after the Indian government banned the popular short-video app and 58 other services over security and privacy concerns.
(Bloomberg Opinion) -- Lululemon Athletica Inc. is stretching itself into a new area of business. The seller of yoga pants and other workout apparel announced late Monday that it had agreed to acquire Mirror, a home-fitness product offering live and on-demand classes as well as personal training, for $500 million. Lululemon CEO Calvin McDonald has said that the startup expects to notch more than $100 million in sales this year and is on track to break even or earn a narrow profit next year. This deal, of course, does little to boost the top line sales for a company that had $4 billion in revenue last year. But it is a worthwhile way for Lululemon to test its ability to move beyond its core retailing expertise. After securing at least $72 million in venture funding and winning some celebrity devotees, Mirror had long been thought of as a potentially powerful disruptor in the fitness business. But now that the pandemic has pushed legions of consumers to explore at-home exercise, its prospects look even brighter. It seems likely that gyms and boutique fitness studios – places where people do lots of heavy breathing in close quarters – will be among the last establishments consumers feel comfortable returning to as the economy reopens. This will be especially true if we see more reports like one earlier this week that a patron to a Planet Fitness gym in West Virginia may have exposed more than 200 people to the novel coronavirus. In other words, the total addressable market for the Mirror has suddenly exploded. In addition to paying nearly $1,500 for the Mirror, a product that mounts on your wall like a mirror or stands in your living room, customers pay a $39 monthly subscription for access to classes. That recurring revenue makes for an attractive business model with strong profitability potential. One of the most impressive aspects of a larger but similar at-home fitness pioneer, Peloton Interactive Inc., has been how sticky its subscriptions have proved to be. If Mirror can achieve anything close to that, it will provide a predictable stream of cash for its new corporate parent. Lululemon has long used in-store yoga classes and running clubs to connect with its customers, and the Mirror acquisition is essentially an extension of that tactic for nurturing shopper loyalty and awareness. It’s easy to imagine ways the brands can cross-promote each other, such as with Mirrors set up for trial in Lululemon shops or with Mirror instructors wearing Lululemon gear in their classes. Simply having entree to Lululemon’s far larger customer base could turbocharge Mirror’s growth. There are certainly ways this acquisition could end up doing little to drive either business forward. Lululemon’s prowess selling clothing may not translate well to scaling what is essentially a hardware and software business. And Lululemon still gets a relatively small share of its sales from outside the U.S. and Canada, so it doesn’t have particularly deep experience in overseas markets, something that might be helpful to Mirror as it aims to grow. Overall, though, they seem like good partners to collaboratively court the kind of consumer that can shell out $98 for leggings and $1,500 for exercise equipment.I always groan at the term “lifestyle brand,” because everyone in retail seems to think they are one and so few truly are. By expanding into home fitness, Lululemon looks more and more like a rare company that actually deserves that designation. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
lululemon (LULU) expands on its digital sweatlife offerings and enhances omni guest experience through its deal to buy MIRROR, which engages in interactive live and on-demand workout classes.
(Bloomberg) -- 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. This is Lulu’s first acquisition.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. 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.Shares gained as much as 8%, the biggest intraday advance since April 17. 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. The S&P 500 Index has dropped 5.3% thus far this year.Here’s what analysts are saying about the acquisition:Cowen, John Kernan“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.”Mirror has a “lean” financial model and a “multi-faceted” value proposition compared to others in the At-Home Fitness market.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.Susquehanna, Sam PoserThe 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.”Rates positive, price target $360.RBC Capital Markets, Kate FitzsimonsInvestors 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.”Rates outperform, price target $348.Stifel, Jim DuffyDuffy 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.Lulu’s “best-in-class” liquidity positioning will be sufficient to fund the transaction and still leave “ample room” to support business operations.Rates buy, price target $365.What Bloomberg Intelligence 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.”\--Analyst Poonam GoyalClick here for the researchBMO, Simeon Siegel“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.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.”Rates market perform, price target $192.(Updates stock activity)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Lululemon today announced plans to acquire home exercise startup Mirror for $500 million. The fitness apparel company noted its plans by way of a press release, noting that it hopes to close the sale by the end of the second fiscal quarter of this year.
lululemon athletica inc. (NASDAQ:LULU) today announced that it has entered into a definitive agreement to acquire MIRROR, a leading in-home fitness company that created an interactive workout platform that features live and on-demand classes, for a purchase price of $500 million.
Investing.com -- Lululemon Athletica Inc (NASDAQ:LULU) shares jumped nearly 4% in after-hours trading in New York Monday after word that the athletic apparel maker had a deal to acquire at-home fitness company Mirror for $500 million.
Lululemon, the yogawear specialist, has agreed to pay $500m to buy Mirror, a home-workout equipment company backed by hedge fund manager Steve Cohen. Mirror, which was founded four years ago by a former professional ballet dancer, sells wall-mounted, internet-connected screens for $1,495 each before tax — plus a $39 monthly membership fee — and has become a popular alternative to the gym among well-heeled consumers. While the closure of retail stores has hurt Lululemon’s bricks and mortar sales, its online business has surged as working from home fuels customer demand for comfortable clothing.
Nike had to close stores in places such as the United States and Europe, and such closures will certainly reflect on the company's fiscal fourth-quarter earnings results on Jun 25, after the closing bell.
What's next for Lululemon (LULU) stock after its Q1 financial results? And we see what to expect from Nike's upcoming quarterly earnings to help figure out if the sportswear giant is a buy despite coronavirus setbacks?
lululemon (LULU) gains tremendous support from the e-commerce business as customers turn to e-portals for their shopping needs amid the coronavirus pandemic.
Store closures pushed revenue lower and sent expenses rising as a percentage of sales, the apparel specialist revealed in its first-quarter earnings report this week. As expected, sales trends were much worse than the 20% spike Lululemon posted just before the novel coronavirus outbreak disruptions started in mid-March. TJX Companies, for example, reported a 53% revenue decline at its apparel segment over the same period.