Lululemon ends Mirror with Peloton partnership, says William Blair

William Blair says Lululemon’s (LULU) five-year partnership with Peloton (PTON) marks the end of Mirror. The deal it gets Lululemon out of the challenged at-home fitness business, the analyst tells investors in a research note. With select Peloton instructors becoming Lululemon ambassadors in the deal, the agreement could also bolster Lululemon’s brand awareness, which sits at just 25% in the U.S., adds the firm. Blair expects the deal to be modestly beneficial to Lululemon in the near term. It continues to view the risk/reward profile on Lululemon’s stock as attractive and reiterates an Outperform rating.