Lululemon Athletica, Inc. cannot find a buyer for its Mirror connected fitness platform despite reducing the price by nearly 90 percent; sources told the New York Post.
In mid-April, SGB Media reported that Lululemon was working with an adviser to explore the sale of Mirror, which offers on-demand workouts and virtual personal training streamed through a video-enabled mirror screen.
The business, now called Lululemon Connect, has underperformed since being acquired by Lululemon for $500 million in 2020, in line with overall weakness in the at-home fitness space.
On March 29, LULU absorbed after-tax impairment and other charges totaling $442.7 million against fourth-quarter earnings related to Mirror as the device’s sales during the holiday season came in below expectations. The New York Post reported that according to a recent Lululemon filing, Lululemon now has a valuation on the Mirror business of $58 million.
The impairment charges in the fourth quarter arrived as Lululemon shifted Mirror away from the hardware-centric business it acquired in 2020 to focus on an app-based model as Mirror sales during the holiday season came in below expectations. At the time, LULU also said it was updating its loyalty program to make ownership of a Mirror no longer a requirement as part of its paid-membership program, Lululemon Studio. The device costs $995, down from $1,500 when Lululemon acquired Mirror for $500 million in July 2020.
Lululemon told the Post in a media statement, “We do not comment on market rumors. As we’ve previously shared, we have evolved our Lululemon Studio strategy to focus on a digital app that will create more opportunities for Lululemon guests to become members and engage with Lululemon Studio content. We are now focused on bringing this strategy to life.”
Photo courtesy Mirror
