Canadian athletic brand Lululemon has bought at-home fitness service Mirror for $500 million.
Sports apparel brand Lululemon has bought at-home fitness service Mirror for $500 million. This is the first acquisition of the Canadian athletic brand, which should be official by the end of the year.
- Lululemon is said to pay $500 million for Mirror
- Following this announcement, Lululemon shares rose 4%
- Peloton, an in-home fitness service that offers high-quality bikes
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A shiny new product
At Home Fitness Service Mirror calls its flagship product “an almost invisible home gym.” As the name suggests, it looks like a mirror. But when it runs, the user’s response is accompanied by a virtual instructor leading to personalized training.
Upon further reflection, users can follow up with the instructor as they check their own form. Its futuristic look and easy-to-use design have already made Mirror successful.
Now, this will be an important step towards the goal of developing Lululemon’s brand. Last year, the fitness apparel company expressed interest in expanding its identity into fitness services.
Chief Executive Calvin McDonald now says that “getting the Mirror is a wonderful opportunity to nurture that vision.” He also suggests that Lululemon’s future is at home fitness service mirror. “This is not an acquisition to sell more clothing,” he says. “We think it’s a byproduct.” He estimates the Mirror will be profitable within the next year.
Details of acquisition
Lululemon is said to pay $500 million for at-home fitness service. Following this announcement, Lululemon shares rose 4%. The operations at Mirror are generally the same under the current CEO Brynn Putnam as a wholly-owned company.
While Putnam is reporting to McDonald’s, he maintains autonomy over the Mirror faction.
A growing industry
During the COVID-19 epidemic, there was a surge in interest in fitness products and services at home. Peloton, an in-home fitness service that offers high-quality bikes, has seen a 66% rise in customers in the past few months.
Interest does not diminish at any time. Even reopened gyms run with restricted hours and activity. Many gyms are currently restricting new customer logins.
This change is likely to become permanent, as many people routinely exercise at home, which will increase the need for exercise technology at home.
With uncertainty next year, the Mirror will see even more users. For the first acquisition, Lululemon has actually hit it out of the park.