Lululemon LULU 1.66% Athletica Inc. is buying at-home fitness company Mirror for $500 million, a deal that aims to capitalize on pandemic-fueled upheaval in the fitness and retail industries.
The startup sells a $1,500 tech-enabled mirror with a camera and speakers so customers can participate in live fitness classes at home. It launched in September 2018 and Lululemon said the business is on track to generate $100 million in sales in 2020.
Lululemon, known for pricey yoga pants, sees Mirror as a way to bolster revenue while also providing another avenue to market its products, CEO Calvin McDonald said in a call with investors. Mirror instructors, for instance, will wear Lululemon products.
The athletic apparel maker’s sales fell sharply in the April-ended quarter as U.S. and European stores were closed amid the coronavirus pandemic, and the company said it is still trying to gauge the impact of the virus on the company’s long-term bricks-and-mortar retail strategy. Lululemon had $4 billion in sales for the fiscal year ended Feb. 2. Source Wall Street Journal
The startup sells a $1,500 tech-enabled mirror with a camera and speakers so customers can participate in live fitness classes at home. It launched in September 2018 and Lululemon said the business is on track to generate $100 million in sales in 2020.
Lululemon, known for pricey yoga pants, sees Mirror as a way to bolster revenue while also providing another avenue to market its products, CEO Calvin McDonald said in a call with investors. Mirror instructors, for instance, will wear Lululemon products.
The athletic apparel maker’s sales fell sharply in the April-ended quarter as U.S. and European stores were closed amid the coronavirus pandemic, and the company said it is still trying to gauge the impact of the virus on the company’s long-term bricks-and-mortar retail strategy. Lululemon had $4 billion in sales for the fiscal year ended Feb. 2. Source Wall Street Journal