CHANHASSEN, Minn. - Life Time (NYSE: LTH) has partnered with athletic apparel company lululemon (NASDAQ: NASDAQ:LULU) to become the official apparel provider for its tennis and pickleball operations, the two companies announced on Tuesday. This collaboration aims to enhance the experience for racquet sports enthusiasts across Life Time's numerous clubs.
The partnership was officially launched at Life Time PENN 1, a luxury athletic club in New York City, which boasts the highest number of street-level pickleball courts in the city. With more than 960 pickleball and indoor tennis courts nationwide, Life Time is recognized as a leader in promoting healthy and active lifestyles.
Life Time's Kimo Seymour expressed enthusiasm about the partnership, emphasizing the alignment of both companies' missions to improve the well-being of their communities. The collaboration will feature lululemon's athletic apparel at various Life Time events, including select Life Time Pickleball Classic tournaments, and will extend to the clubs' retail spaces and online platform.
Celeste Burgoyne of lululemon echoed Seymour's sentiment, highlighting the shared commitment to community well-being and the opportunity to create unique racquet sports experiences. This move comes as pickleball continues to gain popularity, maintaining its status as the fastest-growing sport for the third consecutive year.
Life Time's portfolio includes over 170 athletic country clubs in the United States and Canada, while lululemon is known for its technical athletic apparel and footwear for a range of activities. Both companies are dedicated to fostering connections and promoting well-being through their products and services.
The announcement is based on a press release statement and marks a significant step in bringing together two brands focused on enhancing the lifestyle of athletes and casual players alike in the racquet sports community.
InvestingPro Insights
As Life Time (NYSE: LTH) forges a new partnership with lululemon (NASDAQ: LULU) to outfit racquet sports enthusiasts, the financial metrics of Life Time reveal a company that is actively shaping its market presence. With a market capitalization of $2.94 billion, Life Time is recognized for its substantial footprint in the athletic club industry. According to recent data, the company is trading at an earnings multiple of 40.42, reflecting investor optimism about its growth prospects, particularly as it leverages new collaborations such as the one with lululemon.
Life Time's revenue growth has been robust, with an 18.61% increase over the last twelve months as of Q1 2024, indicating a strong market position that could be further bolstered by the newly announced partnership. The company's gross profit margin stands at an impressive 46.48%, showcasing its ability to maintain profitability amidst expansion efforts. These financials are complemented by a recent surge in stock performance, with an 8.2% return over the last week, hinting at positive market reception to Life Time's strategic initiatives.
InvestingPro Tips highlight that while Life Time operates with a significant debt burden, analysts are predicting profitability for the company this year. Additionally, Life Time's stock price movements have been quite volatile, which may appeal to certain investors looking for dynamic opportunities. For those interested in a deeper dive into Life Time's financial health and future prospects, InvestingPro offers additional insights. In fact, there are 7 more InvestingPro Tips available at https://www.investing.com/pro/LTH, which can be accessed with a special offer: use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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