Yahoo Finance Lululemon CEO explains why it bought Mirror
Workout apparel retailer Lululemon's (LULU) acquisition of Mirror during the pandemic was about strengthening the company's relationship with customers, says CEO Clavin McDonald.
“The acquisition and the positioning of Mirror was all about strengthening our community relationship with our guests,” McDonald said during Yahoo Finance's All Markets Summit.
“The more that they engage and sweat with us, the more they spend. And it drives the overall loyalty. And that vision hasn't changed," he said.
Last summer Lululemon announced it was buying the fitness technology company for $500 million. Mirror competes with Peloton (PTON) by selling the hardware and offering live and recorded streaming work-out classes.
The acquisition was announced amid the pandemic when people were locked down, working out at home.
McDonald sees a hybrid work-out model going forward as lockdowns have eased and more people are going about their every day lives.
"I believe in hybrid fitness," said McDonald. "I'm an active fitness junkie myself."
Lululemon's CEO says guests will continue to go back to physical studios and exercise outdoors, but also work out at home.
"Mirror is uniquely positioned as your at-studio, at-home device," said McDonald. "I'm confidant that the hybrid fitness strategy will work. We're well positioned with the product."
Lulu shares are up about 23% year-to-date.
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