Peloton and Lululemon have reached a settlement regarding lawsuits against each other that were exchanged in November. The allegations were related to an apparel line Peloton launched in September last year.
“The parties have negotiated a mutually agreeable settlement, and are pleased the matters could be resolved amicably, resulting in dismissal of the pending litigation between them,” a Peloton spokesperson told Retail Dive. “Without admissions of any kind, in an effort to resolve the dispute, Peloton has agreed to phase out certain designs identified in the complaint by Lululemon."
Peloton declined to say which designs would be phased out. Lululemon did not respond to a request for comment by the time of publication. The news comes after Peloton’s lawsuit — which asked a court to declare that its apparel line was not infringing on Lululemon’s patents — was dismissed by a judge on Thursday.
Some analysts feel that Peloton’s apparel line has potential.
“We see the prospects for selling branded clothing and accessories as much better than for selling equipment,” GlobalData Managing Director Neil Saunders said in emailed comments in August. “If Peloton can increase its visibility in apparel and related areas that have a higher frequency purchase and good margins, this will provide a small cushion for profit and revenue.”