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.
CNBC reported it would be LuLulemon's first-ever acquisition, to be paid for mostly in cash. Lululemon was an early investor in Mirror, which provides users prescription exercise classes.
Stay-home exercise offerings have gained popularity during the Covid-19 shutdowns. In a press release announcing the deal, Lululemon portrayed the move as a way to diversify its offerings, as at-home activity among its core customer base heats up even if retail stores are struggling with social distancing and other restrictive orders.
CEO Calvin McDonald said in the statement, â€œIn 2019, we detailed our vision to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect. The acquisition of Mirror is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife."
Earlier on Monday, shares of Lululemon closed up 1.7%.