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Lululemon is buying exercise hardware startup Mirror for half a billion dollars

Lululemon is buying exercise hardware startup Mirror for half a billion dollars 1
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Lululemon is buying exercise hardware startup Mirror for half a billion dollars 2

Lululemon is shopping for train {hardware} startup Mirror for half a billion {dollars}

Lululemon, the corporate behind stylish health attire, is moving into the {hardware} enterprise with Mirror. The health way of life firm introduced on Monday it will spend $500 million to amass the startup, which sells a $1,495 reflective show so subscribers can train whereas concurrently streaming exercises and watching themselves.

The attire firm’s CEO Calvin McDonald tells The New York Occasions the acquisition is about “strengthening our neighborhood and our loyalty and our relationship with our visitors and memberships.” He additionally famous that Mirror comes with its personal income mannequin, which he and the crew are “enthusiastic about.”

The Occasions says Mirror expects to herald over $100 million in income this 12 months and to interrupt even or be worthwhile in 2021. Though McDonald informed the paper the COVID-19 pandemic didn’t “set off” the acquisition, the timing doesn’t really feel coincidental.

The pandemic introduced with it a reckoning for retailers — forcing outlets to shut their in-person places for months and resulting in widespread unemployment. Lululemon’s web gross sales dropped 17 % this previous quarter, though its on-line gross sales elevated 70 %. Nonetheless, one house that’s thriving throughout the pandemic is at-home health options. Peloton, as an example, elevated its income by 66 % over the last quarter and gained new customers via a free 90-day trial provide.

By buying Mirror, Lululemon ensures it’ll have earnings coming in from a separate enterprise whereas additionally staying within the health house. Instructors may put on Lululemon clothes, too, tying the companies collectively and mixing {hardware}, software program, and retail.

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