In June ’20, lululemon paid $500M for MIRROR. Here’s how the acquisition is playing out:
- 2020: The company earned $170M in revenue.
- 2021: Revenues are forecasted to rise as much as 65% to $275M.
- 2023: Sales could reach $700M w/600K subscribers by 2023, per BoA.
At this rate, MIRROR would be better than break-even on the acquisition price within three years.
According to lululemon CEO Calvin McDonald, on average, there are more than two MIRROR users per household. And, emphasizing the variety of content, McDonald said users take six different types of workouts each month.
Investing in growth, lululemon plans to:
- add two more production studios
- triple the number of live classes
- hire seven additional instructors to the roster of 15 — all of whom will be lululemon ambassadors
Emphasizing the long-term vision, McDonald added:
“We started the process to purchase Mirror before the global pandemic began… I don’t expect the pandemic tailwinds to disappear once mass vaccinations have occurred.”
Looking ahead: As the economy (and gyms/studios) reopens, lululemon expects its bet on the omnichannel guest experience to pay off.