Lululemon, the company behind the fitness clothing to fashion, launches into the hardware sector with the Mirror. The company way of life fitness has announced on Monday that it would spend $ 500 million to acquire the startup, which sells a reflective shield of 1 495 $ so that subscribers can exercise while broadcasting simultaneously workouts and looking at each other.
The CEO of the clothing company Calvin McDonald says The New York Times the purchase aims to “strengthen our community and our faithfulness and our relationship with our customers and memberships”. He also noted that the Mirror is supplied with its own revenue model, which he and the team are “excited”.
the Time said Mirror is expected to generate more than $ 100 million of revenue this year and reach the break-even or to be profitable in 2021. Although McDonald’s has told the newspaper that the pandemic COVID-19 has not “triggered” the purchase, the time does not seem to coincide.
The pandemic has resulted in a balance sheet for retailers – forcing stores to close their locations in person for months and causing widespread unemployment. The net sales of Lululemon have fallen by 17% in the last quarter, although its online sales have increased by 70%. However, a space that thrives during the pandemic is fitness solutions at home. Platoon, for example, has increased its revenues by 66% over the last quarter, and has gained new users through a free trial offer of 90 days.
In buying Mirror, Lululemon ensures that its revenues will come from a separate business while remaining in the fitness space. Instructors could also wear clothing Lululemon, binding on the enterprises and combining the hardware, software, and retail.