Lululemon Looks Into the Mirror for Its Next Chapter
The athletic apparel maker’s purchase of home-fitness startup Mirror stands to benefit from Covid-era gym aversion and cross-promotion potential.
Lululemon’s move into fitness with Mirror is no big stretch.
Source: Lululemon Athletica Inc.Lululemon Athletica Inc. is stretching itself into a new area of business. The seller of yoga pants and other workout apparel announced late Monday that it had agreed to acquire Mirror, a home-fitness product offering live and on-demand classes as well as personal training, for $500 million. Lululemon CEO Calvin McDonald has said that the startup expects to notch more than $100 million in sales this year and is on track to break even or earn a narrow profit next year.
This deal, of course, does little to boost the top line sales for a company that had $4 billion in revenue last year. But it is a worthwhile way for Lululemon to test its ability to move beyond its core retailing expertise.