Peloton (NASDAQ:PTON) stock is up about 5% today after the exercise bike maker disclosed that it had struck a five-year deal with Lululemon (NASDAQ:LULU). Under the five-year agreement, the firms will jointly sell each other’s products to their customers.

LULU stock is having a rougher go of it this morning and is down 0.2%.

More About the Deal

Peloton will market Lululemon’s athletic apparel to its clients, and LULU will pitch PTON’s exercise programs through its apps, with Peloton acting as “the exclusive digital fitness content provider for Lululemon.” The companies will also try to expand the reach of each other’s brands.

The firms did not disclose any of the financial terms of the agreement.

Going forward, the owners of PTON stock and LULU stock should try to determine the extent to which each company is benefiting from the deal.

One Analyst’s Take

LULU will generate sales from its apparel sold by Peloton, while PTON’s revenue will be lifted as the users of LULU’s app buy the bike maker’s offerings, according to Aneesha Sherman, an analyst at investment bank Bernstein. But these top-line gains will not be significant. Sherman believes.

Instead, the deal will primarily help the two firms by increasing awareness about their brands and helping them obtain new customers, the analyst explained.

Presumably, over the long term, these two developments will improve the companies’ top and bottom lines.

More News About Peloton and PTON Stock

On Sept. 26, a key executive at PTON, Chief Product Officer Tom Cortese, announced that he would step down from the role. Cortese was a co-founder of the company.

Going into today, PTON stock had tumbled 27% in the last month and 41% so far this year.

As of this writing, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.