Lululemon Athletica is said to be shopping Mirror, the fitness device company it paid $500 million to acquire in 2020 and whose technology prompted a Nike lawsuit.
It’s unclear who would pay up for the Mirror, and Lululemon will probably take a loss if a buyer emerges. Bloomberg first reported on the possible sale.
A Lululemon spokeswoman told SJ that the company doesn’t “comment on rumors or speculation.”
“As previously announced, we are shifting the focus of Lululemon Studio from a hardware-centric offering to one that is also focused on digital app-based services going forward,” the rep said.
The Vancouver yoga wear company has been trying to become a “fully experiential brand” for people interested in living what CEO Calvin McDonald called the “sweatlife.”
Mirror, which launched in 2018, offers livestreamed classes, on-demand workouts and one-on-one training sessions through a wall-mounted mirrored device retailing for $1,495. Recent discounts have lowered the price to $995, while class subscriptions run $39 a month.
Lululemon originally expected Mirror to generate more than $150 million in revenue in 2020, when people had few choices beyond working out from home during lockdowns. In December 2021 it cut its 2021 outlook for Mirror sales down $125 million range from $250 million. And in its 2022 fourth quarter, Lululemon took a $443 million impairment charge after hardware sales disappointed.
The company later launched Lululemon Studio as its new app-based fitness offering for Mirror users that didn’t rely on the wall-mounted hardware.
Meanwhile, Nike’s trademark infringement lawsuit against Lululemon is currently on hold until a U.S. tribunal at the Patent Trial and Appeals Board decides whether it should review whether the Swoosh’s six patents are valid.