Lululemon buys fitness tech business to fuel in-home workouts
Activewear brand Lululemon has acquired in-home fitness tech company Mirror for US$500 million, broadening its ability to deliver fitness experiences for its customers.
Mirror offers users a smart mirror that features weekly live classes, and thousands of on-demand workouts, as well as one-on-one personalised training sessions, and will allow Lululemon to accelerate its plans to bolster a fitness ecosystem.
“In 2019 we detailed our vision to be the experiential brand that ignites a community of people living the sweatlife through sweat, grow and connect,” Lululemon chief executive Calvin McDonald said.
“The acquisition of Mirror is an exciting opportunity to build upon thar vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife.”
Under Lululemon, Mirror will continue to operate separately as a standalone business, and serves as a continuation of a partnership that began in mid-2019 – with workout and meditation classes by Lululemon global ambassadors featured on the Mirror platform.
Mirror founder and chief executive Brynn Putnam said the acquisition would allow the fitness tech business to strengthen and accelerate its growth through user acquisition.
According to Lululemon, while many of its stores have closed worldwide during the COVID-19 pandemic, it saw direct to consumer net revenue increase 68 per cent during its first quarter result.
However, falling margins meant gross profit for the period to May 3 fell to US$334.4 million – or 21 per cent down compared to the prior year.
“I’m proud of how lululemon has navigated these unexpected and unprecedented times. We are learning more every day about our guests – how they enjoy interacting with us online and what makes them comfortable as stores reopen,” McDonald said
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