Description: Rivals Peleton and Lululemon are now friends of sorts. Following a long legal “copy cat” dispute, Lululemon will begin manufacturing Peleton’s branded clothing, while at the same time it will stop producing its Mirror exercise platform and related on-line fitness classes. Retail analyst Neil Saunders, offered that both companies eventually realized that “dabbling in areas outside of their core competencies was not yielding results.”
Date: September 29, 2023
1) How many of your classmates have used product from either Lululemon or Peleton?
2) Do you think this strategy of cooperation was a good decision for both companies?
3) Chapter Six of Wiley’s Financial Accounting: Tools for Business Decision-Making opens with a vignette about lululemon athletica that discusses the Covid-19 crisis’s impact on the business. How did the company do during Covid times?