Lululemon, the well-known athletic apparel company, is struggling to find a buyer for its fitness product, Mirror. Despite slashing the device’s value by nearly 90%, the company has yet to attract any interested buyers, according to insiders familiar with the situation.
Last year, at the height of the pandemic-induced exercise craze, Lululemon purchased Mirror for $500 million. However, a recent filing revealed that the company has written down the device’s value to just $58 million.
Sources suggest that Lululemon’s decision to sell Mirror now is a clear indication of the company’s eagerness to offload the failing asset. One insider stated, “If you’re selling something in today’s market, it’s likely a sign of trouble. It’s not the ideal time to be selling something, as buyers are not willing to pay high prices.”
In April, Lululemon reportedly approached fitness company Hydrow regarding a potential sale, but no agreement was reached.
According to a fitness insider, Mirror is essentially just a larger screen compared to an iPhone or iPad. The insider explained, “You don’t need a special mirror when you can simply prop up your phone against an actual mirror to follow workout videos or have a video call with a trainer.”
The 56-inch Mirror includes a camera that allows instructors and friends to see users during workout classes.
Originally, Mirror was sold for $1,495 each when it launched in 2018 by ballerina Brynn Putnam. However, as demand decreased, the price was reduced to $995. Subscriptions for monthly classes now cost $39.
One industry insider commented, “Lululemon wanted to enter the tech space due to the success of Peloton. They were trying to find the next phase of their business but ended up investing in just a big screen.”
Unlike other at-home fitness products that possess unique technology or high-profile instructors like Peloton, Mirror’s lack of distinctiveness has caused it to suffer even more since the end of lockdowns.
Another source stated, “The race to enter the digital fitness market was intense, but now we’re seeing a significant reset. People don’t need 25 fitness apps, especially when there are plenty of free options available.”
An investor compared Mirror to the now-defunct company Juicero, which sold a $400 machine solely for squeezing Juicero-branded juice packets into a cup.
A spokesperson for Lululemon declined to comment on market rumors. However, the company has previously stated that it is focusing on its digital app strategy, which aims to provide more content and membership opportunities to customers through the Lululemon Studio app.
Follow Google News