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Despite Lululemon’s recent financial prowess, one of its tech investments from 2020 has reportedly decreased nearly 10 times from its original value.
After purchasing at-home fitness equipment company Mirror for $500 million, Lululemon is now attempting to sell the asset at a $58 million valuation, according to the New York Post.
In April, reports surfaced that Lululemon was exploring a sale of Mirror, which it had made the centerpiece of its Lululemon Studio membership program. One effort included reaching out to connected rowing machine company Hydrow about selling the Mirror technology.
The state of Mirror wasn’t mentioned on Lululemon’s most recent earnings call highlighting strong sales and increasing revenue. But in March, the company noted the at-home fitness space had “been challenging” and that hardware sales “did not match our expectations.”
It now appears Lululemon would be content recouping even just a fraction of its initial investment in Mirror. On Lululemon’s website, Mirror prices range from $995 to $1,450, along with a $39 monthly membership fee.
That’s still much cheaper than the $4,000 price tag for a more sophisticated machine from Tonal, which is experiencing financial issues of its own. The company did raise $130 million in April but is now valued at nearly $600 million, a billion-dollar drop from its 2021 valuation.
The financial strains are par for the course when it comes to at-home fitness: Peloton missed analysts’ expectations in its most recent quarter and lost $275.9 million.
