Peloton Soars After Lululemon Deal to Share Fitness Content

  • Pact lets apparel company wind down digital workout effort
  • Peloton and Lululemon to launch co-branded clothes in deal

Yoga mats at a Lululemon Athletica store in London.

Photographer: Simon Dawson/Bloomberg
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Peloton Interactive Inc. shares rose as much as 11% Thursday after the company agreed to a deal with Lululemon Athletica Inc. to tap its online workouts and team up on apparel.

As part of the accord, announced Wednesday, Lululemon will make co-branded clothing that Peloton will sell on its website and at retail stores. Peloton’s fitness content, meanwhile, will be offered to users of the Lululemon Studio Mirror, a $995 device that lets people work out in front of a 43-inch screen, and the apparel maker’s free digital app.