Lululemon, a popular sportswear company, has been unable to find a buyer for its Mirror fitness product – despite a nearly 90% reduction in the worth it paid for the device.
Lululemon paid $500 million for a low-tech gadget through the height of the 2020 pandemic-induced exercise craze. Nevertheless, a recent filing showed the corporate saw Mirror’s value to just $58 million.
One knowledgeable source said the proven fact that Lululemon has now decided to sell the product underscores how eager the corporate is to offload a sinking resource.
“In the event you’re selling anything on this market today, you are probably in trouble,” On The Money told a source close to the situation. “This just isn’t the time to sell something – no person buys things at high multiples.”
Apparently Lululemon turned to fitness company Hydrow in Aprilbut no deal was made.
“The truth is that the Mirror is just a larger ‘screen’ than your iPhone or iPad,” one fitness insider told On The Money. “You do not need a special mirror – you possibly can literally lean your phone against the mirror and record an exercise video or use the FaceTime coach.”
The 56-inch mirror includes a camera so instructors and friends can see users during training sessions.
Originally, the Mirror – launched in 2018 by ballerina Brynn Putnam – retailed for $1,495 each, but as demand fell, the worth dropped to $995. A monthly subscription to classes now costs $39.
“They wanted to get into the tech space because they saw Peloton grow,” one fitness insider told On The Money. “They tried to find the subsequent stage of their business, but in the long run they only invested in a big, old screen.”
While most home fitness products have suffered dramatically since lockdowns ended, Mirror found itself even worse off than other corporations because it lacked unique technology just like the Tonal smart gym or Peloton’s celebrity instructor connections.
“There was an arms race trying to get into digital prowess, but we’re seeing a massive reset,” one other insider said. “Nobody needs 25 fitness apps, especially when there are such a lot of free options.”
One investor likened Mirror to the now-defunct Juicero, a company that sold a $400 juicing machine with the Juicero logo into a cup.
A spokesperson for Lululemon said: “We don’t comment on market rumors. As previously reported, we have now expanded our Lululemon Studio strategy to give attention to a digital app that may create more opportunities for lululemon visitors to grow to be members and have interaction with lululemon Studio content. We are actually focused on putting this strategy into practice.”