Lululemon, the company behind modern sportswear, is entering the hardware business with Mirror. The fitness lifestyle company announced Monday that it would spend $ 500 million to acquire the startup, which sells a reflective screen for $ 1,495 so that subscribers can exercise while simultaneously streaming workouts and watching themselves.
Clothing company CEO Calvin McDonald tells him The New York Times Buying is about “strengthening our community and our loyalty and our relationship with our guests and memberships.” He also noted that Mirror comes with its own revenue model, which he and the team are “excited about.”
the Times He says Mirror hopes to generate more than $ 100 million in revenue this year and reach a break-even point or be profitable by 2021. Although McDonald told the newspaper that the COVID-19 pandemic did not “trigger” the purchase, the timing does not look like one. coincidence.
The pandemic brought a calculation for retailers: It forced stores to close their locations in person for months and caused widespread unemployment. Lululemon’s net sales fell 17 percent in the last quarter, although its online sales increased 70 percent. Still, one space that thrives during the pandemic is home fitness solutions. Peloton, for example, increased its revenue by 66 percent in the last quarter and gained new users through a 90-day free trial offer.
By purchasing Mirror, Lululemon ensures that he will have income from a separate business and at the same time remain in the gym. Instructors can also wear Lululemon clothing, uniting businesses and combining hardware, software, and retail.
