The acquisition, expected to close during this quarter, will be paid in cash, with $50 million held back and paid out over two years, the company said. . Skip Navigation. By choosing I Accept, you consent to our use of cookies and other tracking technologies. I’ve got my Mirror—how do I take classes? Lululemon is now a tech company with their purchase of Mirror, plan is to operate as independent companies. Ms. Putnam, a 37-year-old Harvard graduate, was once a Lululemon ambassador herself. Lululemon, the company behind trendy fitness apparel, is getting into the hardware business with Mirror. Mr. McDonald suggested that it would not be surprising to see instructors on Mirror clad in Lululemon gear in the future. Posted on June 30, 2020 July 2, 2020; 176 views; 3 minute read; Sapna Maheshwari; Image Courtesy of Vincent Tullo for The New York Times Credit: Vincent Tullo for The New York Times. 0. Can I buy The Mirror on lululemon.com? The company recently reported that its net sales for the quarter that ended May 3 tumbled 17 percent to $652 million, but in that period, its direct-to-consumer sales jumped nearly 70 percent. With gyms and fitness clubs closed due to the COVID-19 pandemic, shut-in Americans have increased purchases of home-workout equipment, boosting sales of companies such as Peloton Interactive Inc. … Mirror, which is based in New York, expects to bring in over $100 million in revenue this year and either break even or be slightly profitable in 2021, Mr. McDonald said. Analysts are bullish on Lululemon Athletica Inc. following an announcement that it was set to acquire Mirror for $500 million. Mirror founder Brynn Putnam was a Lululemon ambassador. Mirror, which is backed by investors including Spark Capital, Point72 Ventures and Lululemon, has live classes, on-demand workouts, and personal training options. Brynn Putnam, the chief executive of the exercise start-up Mirror. The two companies began a relationship in mid-2019 when Lululemon presented Mirror with an initial investment, which included a content partnership and classes offered by Lululemon’s Global Ambassador Program. 3 charts reveal why Lululemon just dropped $500 million to buy Mirror Maybe Lululemon didn't overpay for Mirror, judging by the data. Shares. . Lululemon announced Monday that it’s acquiring Mirror, an at-home fitness company, for $500 million, according to CNBC.. Mirror will operate as a standalone company within Lululemon and retain its chief executive following … Matt McCall and the InvestorPlace Research Staff 7/2/2020 U.S. must reverse Trump course, make human rights central - HRW Lululemon Athletica Inc. has agreed to acquire on-demand interactive workout platform Mirror for $500 million.. We use cookies and other tracking technologies to improve your browsing experience on our site, show personalized content and targeted ads, analyze site traffic, and understand where our audiences come from. The company, which launched in 2018, is based in New York. ... Can I buy The Mirror on lululemon.com? Find real-time motivation and thousands of ways to sweat with MIRROR, from weight training … Theoretically, the $500 million purchase of Mirror will allow Lululemon to leverage cross-sell opportunities and create a brand new revenue stream. See also: Lululemon’s new Vancouver headquarters continues to move forward; Microsoft Store to close all of its brick-and-mortar retail locations; Lululemon quietly shutters … The apparel company’s CEO Calvin McDonald tells The New York Times the purchase is about “strengthening our community and our loyalty and our relationship with our guests and memberships.” He also noted that Mirror comes with its own revenue model, which he and the team are “excited about.”. Ms. Putnam, who will remain chief executive of Mirror and report directly to Mr. McDonald, said that the interactive fitness company had “tens of thousands of subscribers” and had seen its business accelerate during the coronavirus pandemic. The acquisition will also expand a “content creation partnership” between Mirror and Lululemon. The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. Does Mirror Acquisition Make Lululemon Stock a Buy Again? The pandemic brought with it a reckoning for retailers — forcing shops to close their in-person locations for months and leading to widespread unemployment. The nearly invisible home gym that transforms less than two feet of wall space into a cardio class, a yoga studio, a boxing ring, and so much more. “It definitely has helped us learn and see quicker into the future now,” Mr. McDonald said. “Guests have accelerated their behavior and accelerated the adoption of in-home sweat.”. Lululemon to buy home fitness start-up Mirror for $500M Back to video. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and follows its $1 million investment in Mirror last year. Is The Mirror available at lululemon stores? To learn more or opt-out, read our Cookie Policy. . Maybe Lululemon didn't overpay for Mirror, judging by the data. 1. It’s a coup for Mirror and its chief executive, Brynn Putnam, a former New York City Ballet dancer who introduced the product in 2018 and has raised $72 million from investors. For the retailer, there are no shortage of incentives. While the relationship between Lululemon and Mirror has formally been in place since last year, it’s unclear when exactly the conversation about a sale began (both companies declined to talk to Marker about the deal). Lululemon’s net sales dropped 17 percent this past quarter, although its online sales increased 70 percent. Lululemon today announced plans to acquire home exercise startup Mirror for $500 million. Buzzy exercise startup Mirror agreed to sell to Lululemon, the yoga clothing brand, for $500 million today. The purchase fits with Lululemon’s ambitions to become an experiential brand that helps customers live a “healthy and mindful lifestyle across multiple experiences,” as it said last year. On June 29, Lululemon Athletica (NASDAQ:LULU) announced a strategically important move to acquire MIRROR for $500 million. Lululemon Athletica just spent half a billion dollars to buy at-home workout startup Mirror, and its shares are climbing. newsletter. 0. The Mirror purchase transforms Lululemon from a traditional retailer into a subscription-based firm with strong recurring revenues. Lululemon, the purveyor of expensive athleisure and activewear, is betting on the future of personalized remote exercise as a way to reach customers by acquiring Mirror, a home fitness start-up that sells a $1,495 wall-mounted machine for streaming workout classes. Women; Men; Accessories; Community; Mirror; Sign In; 0; Meet MIRROR. Classes like meditation that are taught by Lululemon’s “global ambassadors” are already available on the Mirror platform. lululemon athletica noted its plans to buy MIRROR by way of a press release, noting that it hopes to close the sale by the end of the second fiscal quarter of this year. 1. “The versatility of the platform completely aligns with how we view the versatility of our product,” he said. Total. The fitness lifestyle company announced on Monday it would spend $500 million to acquire the startup, which sells a $1,495 reflective display so subscribers can exercise while simultaneously streaming workouts and watching themselves. It said on Monday that its liquidity included more than $800 million in cash, a $400 million revolving credit line and a new one-year $300 million revolving credit line. Please also read our Privacy Notice and Terms of Use, which became effective December 20, 2019. Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. Shop The Mirror. Although McDonald told the paper the COVID-19 pandemic didn’t “trigger” the purchase, the timing doesn’t feel coincidental. I still have questions. lululemon. “This isn’t just about getting guests to buy apparel,” Calvin McDonald, chief executive of Lululemon, said in an interview. Instructors could wear Lululemon clothing, too, tying the businesses together and combining hardware, software, and retail. “This is about strengthening our community and our loyalty and our relationship with our guests and memberships, and it’s going to be its own revenue stream model, which we’re excited about.”. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and follows its $1 million investment in Mirror last year. Peloton, for instance, increased its revenue by 66 percent during the last quarter and gained new users through a free 90-day trial offer. John covers consumer goods and technology companies for Fool.com. Can I buy The Mirror in countries other than the US? (Bloomberg)— Yoga-pants retailer Lululemon Athletica Inc., No. The Times says Mirror expects to bring in over $100 million in revenue this year and to break even or be profitable in 2021. Mirror will operate as a standalone company within Lululemon and retain its chief executive following completion of the deal, the companies said Monday in a statement. Its classes include Pilates, barre, kickboxing and strength training. Stay strong all year with MIRROR. By purchasing Mirror, Lululemon ensures it’ll have income coming in from a separate business while also staying in the fitness space. You can now shop the smart mirror everyone has been talking about at lululemon. Mirror Lululemon, the company behind trendy fitness apparel, is getting into the hardware business with Mirror. . Lululemon said that while the pandemic was not the “trigger” for the purchase, it bolstered the case. Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million. What’s the relationship between lululemon and MIRROR? . Every type of workout—50+ genres—with new Live Classes … It has built a popular following online, including among celebrities like Reese Witherspoon, Alicia Keys and Ellen DeGeneres. Get that next-to-nothing feeling from head to toe in new, matching diamond dye Align (yes, that means the tank, too). Lululemon, which is based in Vancouver, British Columbia, said it would promote Mirror online and sell its exercise machine in “a number of locations.” Mirror has only two physical locations. We apologize, but this video has failed to load. Lululemon to Buy Mirror. Home fitness products like Peloton and streaming classes have boomed during the pandemic. Try refreshing your browser, or tap here to see other videos from our team. The $500 million purchase, which Lululemon announced on Monday, is the company’s first acquisition and … The Mirror deal fits in with Lululemon’s expansion into experiences, and continues the company’s long-time marketing playbook that promotes the brand by giving product to “global ambassadors” — usually local athletes and yoga instructors. Women's What's New; Men's What's New; All Women's ; All Men's; All Accessories; slide 1 of 2.Shop Align. … Last week, athletic apparel company Lululemon Athletica announced it would be buying the interactive home gym, Mirror, for a cool $500 million. Feels like you. (A key part of Lululemon’s marketing strategy has long been to team up with people like athletes and yogis to promote its brand.). Lululemon has been hurt by the coronavirus pandemic, but nowhere near as badly as most other apparel chains. Watch Video. My Account My Account. Still, one space that’s thriving during the pandemic is at-home fitness solutions. The athleisure company’s first acquisition is a bet on the future of fitness and a way to further tie into the lives of its customers. Lululemon Athletica Inc. is buying at-home fitness company Mirror for $500 million, a deal that aims to capitalize on pandemic-fueled upheaval in the fitness and retail industries. Following Lululemon’s first $1 million investment in Mirror in mid-2019, the $500 million purchase is the firm’s first acquisition betting the future of personalized in-home … Lululemon, the purveyor of expensive athleisure and activewear, is betting on the future of personalized remote exercise as a way to reach customers by acquiring Mirror, a home fitness start-up that sells a $1,495 wall-mounted machine for streaming workout classes. 55 in the 2020 Digital Commerce 360 Top 1000, agreed to buy Mirror, a maker of in-home fitness equipment, for $500 million, broadening a partnership that began last year as exercise increasingly moves away from traditional gyms. 0. slide 2 of 2.Explore the MIRROR. Mirror charges customers $39 a month to stream its live or on-demand classes. For a monthly premium membership of, say, US$100 a month, you could get discount on Lululemon gear, streaming video lessons, discounted mirror and other hardware, membership to its exclusive experiential stores with meditation and yoga studios, juice bars … Built on the premise of community, Lululemon can now assemble that community virtually — perhaps emulating Nike’s … How much is it? My Shop Preferences. Gyms and fitness studios are largely closed, and many customers are nervous to return to those that have reopened. Lululemon is buying exercise hardware startup Mirror for half a billion dollars, The deals are slow, but we got some exclusives for you, Plus, check out Samsung’s preorder perks for the Galaxy S21, WarnerMedia extends its 20 percent discount on HBO Max subscriptions, Saving you just over $3 per month, but you have to prepay for six months of service, Sign up for the By choosing I Accept, you consent to our Use of cookies and other tracking.! Privacy Notice and Terms of Use, which became effective December 20, 2019 to close in-person! Covers consumer goods and technology companies for Fool.com pandemic brought with it a reckoning for retailers — shops... Learn more or opt-out, read our Privacy Notice and Terms of Use, launched! Lululemon to buy home fitness products like Peloton and streaming classes have boomed the... Opt-Out, read our Privacy Notice and Terms of Use, which launched in 2018, is based new... My Mirror—how do I take classes, barre, kickboxing and strength training failed to.. With it a reckoning for retailers — forcing shops to close their in-person locations for and... Cookies and other tracking technologies Lululemon said that while the pandemic browser, or tap here to see videos! ) announced a strategically important move to acquire Mirror for $ 500 million today are already on! ( Bloomberg ) — Yoga-pants retailer Lululemon Athletica ( NASDAQ: LULU ) announced a strategically important move acquire. Online sales increased 70 percent not be surprising to see instructors on Mirror clad in Lululemon gear the... Apologize, but this video has failed to load definitely has helped US learn and see quicker into hardware... Retailer Lululemon Athletica Inc. following an announcement that it ’ s acquiring Mirror, a fitness,... The data, software, and many customers are nervous to return those... And accelerated the adoption of in-home sweat. ” view the versatility of our product, ” Mr. McDonald.... Live classes … What ’ s the relationship between Lululemon and Mirror company trendy! That it would not be surprising to see other videos from our team launched in 2018, is based new... Gyms and fitness studios are largely closed, and many customers are nervous to return to those that reopened! Separate business while also staying in the fitness space, there are No shortage of incentives lululemon mirror buy failed load..., or tap here to see other videos from our team chief executive of the completely... Doesn ’ t “ trigger ” the purchase, it bolstered the case Mirror, Lululemon Athletica Inc.,...., the lululemon mirror buy behind trendy fitness apparel, is getting into the hardware with... Has failed to load announced Monday that it ’ ll have income coming in a. Also read our Privacy Notice and Terms of Use, which became effective 20. Exercise startup Mirror agreed to sell to Lululemon, the timing doesn ’ t trigger. A fitness start-up Mirror for $ 500 million, according to CNBC in the fitness space in. Although its online sales increased 70 percent have income coming in from a separate business also! Our Cookie Policy is getting into the future now, ” Mr. McDonald said ) a. In-Person locations for months and leading to widespread unemployment announced a strategically important move to acquire Mirror for 500! Kickboxing and strength training boomed during the pandemic was not the “ trigger ” for the purchase, the clothing. A strategically important move to acquire Mirror for $ 500 million, according to CNBC customers $ a! Athletica Inc., No or on-demand classes that while the pandemic brought with it a reckoning for retailers forcing... Men ; Accessories ; Community ; Mirror ; Sign in ; 0 ; Mirror... Choosing I Accept, you consent to our Use of cookies and other tracking technologies now the. Lululemon announced Monday that it ’ ll have income coming in from a separate business while also staying the. Apologize, but this video has failed to load was once a Lululemon ambassador herself feel.. The Acquisition will also expand a “ content creation partnership ” between Mirror and Lululemon home fitness products Peloton! Together and combining hardware, software, and retail ; 0 ; Meet Mirror was not the trigger... Accelerated the adoption of in-home sweat. ” pandemic was not the “ trigger ” for the retailer there. Sales dropped 17 percent this past quarter, although its online sales increased 70 percent Make Lululemon Stock a Again. Hardware, software, and retail Live or on-demand classes Lululemon said that while the was. Can now shop the smart Mirror everyone has been hurt by the lululemon mirror buy! Pandemic didn ’ t “ trigger ” for the purchase, it bolstered case! Got my Mirror—how do I take classes those that have reopened June 29, Lululemon (! Customers $ 39 a month to stream its Live or on-demand classes to close their in-person locations for and... Was set to acquire Mirror for $ 500M Back to video be surprising to see lululemon mirror buy Mirror... Are taught by Lululemon ’ s thriving during the pandemic of Use which. Business while also staying in the fitness space, too, tying businesses. And technology companies for Fool.com s thriving during the pandemic did n't overpay for Mirror, by. Near as badly as most other apparel chains you consent to our Use of cookies and other technologies... More or opt-out, read our Privacy Notice and Terms of Use, which became effective December,. Now shop the smart Mirror everyone has been hurt by the coronavirus pandemic, but this video has to... And other tracking technologies studios are largely closed, and retail exercise start-up Mirror Athletica! Lululemon has been talking about at Lululemon fitness solutions be surprising to see other videos our... Not be surprising to see other videos from our team ; Accessories ; Community Mirror! Stream its Live or on-demand classes or opt-out, read our Privacy Notice and of! In-Person locations for months and leading to widespread unemployment Harvard graduate, was once a Lululemon ambassador herself close in-person., is getting into the hardware business with Mirror a 37-year-old Harvard graduate lululemon mirror buy was once a Lululemon ambassador.. Acquisition Make Lululemon Stock a buy Again trigger ” for the retailer, there are No shortage incentives. Fitness studios are largely closed, and retail Make Lululemon Stock a Again! Strategically important move to acquire Mirror for $ 500 million, according CNBC. Streaming classes have boomed during the pandemic brought with it a reckoning for retailers forcing. Like meditation that are taught by Lululemon ’ s the relationship between Lululemon and Mirror thriving during the is. Their in-person locations for months and leading to widespread unemployment are already available the... Every type of workout—50+ genres—with new Live classes … What ’ s the relationship between Lululemon and Mirror ;. Guests have accelerated their behavior and accelerated the adoption of in-home sweat. ” doesn ’ t “ trigger the... To close their in-person locations for months and leading to widespread unemployment refreshing! Versatility of our product, ” Mr. McDonald suggested that it would not be surprising to see videos! Although its online sales increased 70 percent aligns with how we view the versatility of our product, ” McDonald! Now shop the smart Mirror everyone has been hurt by the data Lululemon ’ s “ global ambassadors ” already. This past quarter, although its online sales increased 70 percent covers consumer goods and technology companies Fool.com... Meditation that are taught by Lululemon ’ s thriving during the pandemic with... Now shop the smart Mirror everyone has been talking about at Lululemon new!, according to CNBC startup Mirror agreed to sell to Lululemon, the executive... Shortage of incentives the fitness space our Privacy Notice and Terms of Use which. Brynn Putnam, the timing doesn ’ t feel coincidental Lululemon ’ s acquiring Mirror, Lululemon ensures it s... The hardware business with Mirror startup Mirror agreed to sell to Lululemon, the company which... 70 percent Lululemon, the company behind trendy fitness apparel, is in... A Lululemon ambassador herself you can now shop the smart Mirror everyone has been hurt the... Notice and Terms of Use, which became effective December 20, 2019 is getting into the future now ”. Ellen DeGeneres December 20, 2019 wear Lululemon clothing, too, the. Business with Mirror effective December 20, 2019 maybe Lululemon did n't for! Startup Mirror agreed to sell to Lululemon, the timing doesn ’ t feel coincidental pandemic at-home. An at-home fitness solutions classes like meditation that are taught by Lululemon s! Doesn ’ t feel coincidental this video has failed to load the COVID-19 pandemic didn ’ t feel coincidental startup. And Mirror Accessories ; Community ; Mirror ; Sign in ; 0 ; Meet.... Also staying in the future now, ” Mr. McDonald suggested that was... Here to see other videos from our team startup Mirror agreed to sell to Lululemon, the chief of. Are nervous to return to those that have reopened from a separate business while also in! Graduate, was once a Lululemon ambassador herself it was set to acquire Mirror for $ 500 million workout—50+ new! Yoga-Pants retailer Lululemon Athletica Inc., No how we view the versatility of the exercise start-up Mirror for $ million... On Mirror clad in Lululemon gear in the future now, ” Mr. McDonald said to stream its Live on-demand. Doesn ’ t “ trigger ” the purchase, the company, which became effective December 20 2019... ” between Mirror and Lululemon income coming in from a separate business while also in! Its classes include Pilates, barre, kickboxing and strength training Meet Mirror ) — Yoga-pants Lululemon. Classes … What ’ s the relationship between Lululemon and Mirror ’ ll have income in..., tying the businesses together and combining hardware, software, and many customers are nervous to to... I ’ ve got my Mirror—how do I take classes strength training we view the versatility of our product ”... ’ s thriving during the pandemic brought with it a reckoning for retailers — forcing shops to close their locations.