Lululemon moves into in-home fitness with $500M deal for Mirror
Lululemon Athletica has announced that it has entered into a definitive agreement to acquire Mirror, an in-home fitness startup that sells a wall-mounted device that streams live and pre-recorded classes.
The acquisition, when completed, will be the first for Lululemon. It follows a $1 million investment that the yoga-inspired athletic and athleisure brand made in Mirror last year. That deal also involved a content agreement between the two companies whereby various fitness and yoga classes by Lululemon ambassadors were offered on the Mirror platform.
Mirror was founded in 2018 by Brynn Putnam, a former dancer with the New York City Ballet. The company, which competes against Peloton and other in-home fitness services, expects to generate $100 million in revenues this year. Ms. Putnam will remain as CEO of Mirror once the deal is finalized.
The company’s hardware sells for $1,495 (there’s also a zero percent interest monthly payment plan) and offers unlimited classes for a monthly subscription fee of $39. The platform boasts expert certified trainers, real-time optimization with workout adjustments based on an individual’s targets and customized playlists in a variety of musical genres. A current deal on the site offers three free months of classes and a starter kit at no additional charge. The devices, which are delivered by a white glove service, come with a 30-day risk-free trial and a one-year warranty.
Last year, Lululemon announced its intention to become part of the everyday experiences in people’s lives. It introduced its Sweatlife customer acquisition and retention strategy built on three pillars — Sweat, Grow and Connect — that seeks to help people reach their fitness goals and become their best selves through meditation, restoration and recovery and by creating bonds with others to strengthen a sense of community.
“The acquisition of Mirror is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweatlife,” said Lululemon CEO Calvin McDonald in a statement.
Lululemon reported a 17 percent drop in total sales during the first quarter after it was forced to close stores in response to the coronavirus outbreak. The company saw its online sales jump 68 percent in the quarter to account for 54 percent of its total revenue, up from just under 27 percent in the same period in 2019.
- Lululemon Athletica Inc. To Acquire Home Fitness Innovator MIRROR – Lululemon Athletica Inc.
- Lululemon Athletica Inc. Announces First Quarter Fiscal 2020 Results – Lululemon Athletica Inc.
- Will a strategy built around changing people’s lives transform Lululemon’s business? – RetailWire
- Lululemon to acquire at-home fitness company Mirror for $500 million – CNBC
- Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million – The New York Times
DISCUSSION QUESTIONS: Do you expect other athletic wear and athleisure brands to expand their efforts in the at-home fitness technology market following Lululemon’s acquisition of Mirror? What rivals to Lululemon and Mirror do you see being most affected by this deal?