Lululemon Explores Mirror Sale in Pivot from Fitness Hardware

Lululemon could be looking to offload one of its biggest assets. 

Bloomberg reports that the activewear giant is working with an advisor to garner interest in Mirror, the at-home fitness equipment company it bought in 2020 for $500 million. 

Lululemon jumped on 2020’s pandemic-driven at-home fitness boom to buy Mirror — which makes an interactive screen for streaming workout videos. 

But in a March 2023 earnings call, the company admitted that “since our [Mirror] acquisition, the at-home fitness space has been challenging. While members love our content, hardware sales did not match our expectations.”

Lululemon’s year-over-year total revenue increased 30% to $2.8 billion in 2022, but the company took $443 million in impairment charges related to Mirror in the fourth quarter.

“We are pivoting away from the hardware-centric business that we acquired to also focus on a more efficient app-based model,” Lululemon said in its Q4 2022 earnings call. 

Mirror’s struggles are on par with other hardware-focused fitness companies as customers inch back toward pre-pandemic levels of gym visits. Peloton’s stock has dropped about 92% over the past two years, while Tonal’s valuation has decreased by about $1 billion since 2021.