Lululemon Explores MIRROR Sale


lululemon might offload MIRROR.

The latest: Amid slowing demand and shifting fitness habits, the activewear company is rethinking the role of its interactive exercise device.

Earlier this month, lululemon said it’s “pivoting away” from hardware, taking a device-agnostic, app-based approach to digital workouts.

Now, Bloomberg is reporting that the company is seeking a buyer for the equipment maker.

Catch up. Reporting Q4 and full-year 2022 earnings, lululemon revealed a $442.7M post-tax impairment charge related to MIRROR.

Having written down its investment as hardware sales suffer, it’s clear the company’s connected fitness experiment did not go as planned:

  • lululemon acquired MIRROR for $500M in 2020.
  • In 2021, lulu slashed revenue projections for the fitness screen to $125M–130M from $250–275M.
  • Last year, it attempted to bundle MIRROR with exclusive perks as part of a broader membership program.

Not alone, MIRROR’s performance is reflective of headwinds facing the entire smart equipment category.

  • Tonal saw its valuation cut from $1.9B to ~$600M in a recent down round.
  • Attempting a turnaround, Peloton’s market cap has fallen to $4B from $50B in 2021.
  • After canceling its IPO, NordicTrack parent iFIT had its valuation cut by 60% in a 2022 funding round.

Looking ahead: While lululemon declined to comment regarding a potential sale, it’s no secret that the company doesn’t see its future in MIRROR. The bigger question, though, is which high-tech equipment maker emerges from the post-pandemic crunch.

Get the latest health and fitness industry news

Keep up with industry news, trends, investment activity, and job openings — in one weekly newsletter.

    No thanks.