We’ve written quite a bit about Lulu and their continuous battle thriving the the Canadian fashion industry. However, with the struggles this company has faced in the recent few quarters, comes some good news for consumers. Lululemon Athletica has acquired a stake in a Canada-based cycling apparel startup – 7mesh Industries – in hopes to expand beyond just yoga-gear.
Vancouver-based Lululemon said it has made a minority investment in 7mesh Industries, stating that the two would collaborate on new ventures with Lululemon’s research and development in order to generate products that are beneficial and appropriate to both brands.
Lululemon’s CFO and COO, Stuart Haselden told Fortune, “It is an interesting collaboration, a relatively small effort if you will, but what we like about it is it is an example of how we are looking to stretch our model of innovation outside our four walls […] Cycling is a category that is small but if we could leverage a partnership with them, it could make sense for us to enter it effectively.”
Even after Lulu’s challenging sales decline, the company proves to persevere. Let’s go Lulu!
Information gathered from Fortune.