Welcome to The Week in Direct-to-Consumer, a weekly roundup for marketers from Quad Insights that sums up the latest news in the DTC space.
Peloton and Lululemon launch partnership
A year after settling a lawsuit related to Peloton’s private-label fitness apparel, Lululemon and Peloton agreed to a five-year “strategic global partnership” on Wednesday, reports CNN’s Jordan Valinsky. By the year’s end, Lululemon will stop selling its Mirror fitness device and will stop production of its own fitness classes. “In the next few months,” Valinsky notes, “Peloton’s streaming fitness classes will be available in the ‘Lululemon Studio’ app for subscribers.” Also, Peloton is reducing production of its own private-label clothing, and Lululemon will launch Peloton-branded apparel online and at Peloton studios on Oct. 11.
• “Lululemon and Peloton End Their Feud” (The Wall Street Journal)
EBITDA metric favored among DTC brands
In a post titled “Why EBITDA has such a strong hold on retail,” Retail Dive’s Dani James discusses the relevance of EBITDA and adjusted EBITDA reporting for retail, citing DTC brands as examples of how these metrics can be impactful. For instance, Warby Parker Co-founder and Co-CEO Neil Blumenthal tells James that investors view the metrics as “the best indicators of long-term success” for growth companies such as the DTC eyewear brand. In its Q2 2023 results, Warby Parker reported a 4.5% increase in adjusted EBITDA.
James also explores fast-growing DTC athletic shoe and apparel brand On. The company’s adjusted EBITDA has increased since 2018, and Q2 2023 marked its sixth consecutive record quarter, as we noted in an earlier installment of The Week in Direct-to-Consumer.
E.l.f. Cosmetics partners with Jennifer Coolidge again
After teaming up with Jennifer Coolidge for an ad that aired during this year’s Super Bowl, E.l.f. Cosmetics has partnered with the White Lotus star again to create Dirty Pillows, a four-piece lip kit that launched on Sept. 27, according to a company announcement.
E.l.f. continues to grow from its DTC roots with retail partnerships with the likes of Amazon and Target, and recently doubled its skincare market presence by acquiring Naturium, as we noted in an earlier installment of The Week in CPG.
• “Jennifer Coolidge Collaborates With E.l.f. Cosmetics on Dirty Pillows Lip Kit” (Women’s Wear Daily)
Bluemercury enters a new product category with its launch of Cerulean 6°
DTC luxury beauty brand Bluemercury is adding to its growing list of in-house labels and is entering the bath, body and home fragrance category with its launch of Cerulean 6°, according to a company announcement. The new line’s name “represents the 6° of sensory perception brought to every experience” and features body crème, lather, oil and polish options, as well as scented candles.
• “Bluemercury Unveils Cerulean 6° Range of Bath, Body & Candles” (Global Cosmetic Industry)
• “Redken launches DTC website” (Retail Dive)
• “Ralph Lauren expands in Canada with digital platform, first luxury store” (Fashion Network)