Lululemon is considering selling its Mirror fitness product line less than three years after acquiring it.
The apparel company purchased Mirror for $500 million at the height of the at-home fitness trend in 2020. However, it has since faced difficulties integrating it with its primary business of selling athletic apparel and footwear.
Sources familiar with the matter, who requested anonymity due to the sensitive nature of the information, reported that Lululemon is collaborating with an advisor to gauge interest in Mirror.
The move to explore a sale follows Lululemon’s projections which reveal that Mirror’s hardware sales fell short. As a result, the company recorded $443 million in impairment charges for the business during the fourth quarter.
The Vancouver-based company has rebranded its previous Mirror product as Lululemon Studio and has since shifted its focus toward a digital and app-based product. Additionally, the company has eliminated the hardware requirement for its new app, which it plans to launch this summer at a lower subscription rate, according to Lululemon CEO Calvin McDonald.
“We don’t comment on rumors or speculation,” a representative for Lululemon said in a statement.
With the lifting of pandemic restrictions and the resurgence of in-person workouts, companies specializing in fitness-focused hardware have encountered challenges. As a result, the stock prices of companies such as Peloton Interactive have fallen by approximately 92% over the last two years. Meanwhile, Tonal’s CEO recently resigned after the company raised funding at a significantly lower valuation than before.
Bloomberg was the first to break the news.
Photo credit: Lululemon