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

Lululemon, the business behind stylish fitness garments, is getting into the hardware service with Mirror. The fitness lifestyle business announced on Monday it would spend $500 million to get the start-up, which offers a $1,495 reflective display screen so customers can exercise while concurrently streaming exercises and enjoying themselves.
The garments companys CEO Calvin McDonald informs The New York Times the purchase has to do with “strengthening our community and our loyalty and our relationship with our memberships and visitors.” He likewise noted that Mirror includes its own profits design, which he and the team are “excited about.”
Mirror offers a $1,495 reflective display for streaming workouts
The Times says Mirror expects to bring in over $100 million in earnings this year and to break even or be profitable in 2021. McDonald told the paper the COVID-19 pandemic didnt “activate” the purchase, the timing does not feel coincidental.
The pandemic brought with it a reckoning for sellers– requiring stores to close their in-person areas for months and resulting in widespread joblessness. Lululemons net sales dropped 17 percent this previous quarter, although its online sales increased 70 percent. Still, one area thats prospering throughout the pandemic is at-home fitness services. Peloton, for instance, increased its revenue by 66 percent during the last quarter and gained brand-new users through a totally free 90-day trial offer.
By buying Mirror, Lululemon guarantees itll have earnings can be found in from a separate service while likewise remaining in the fitness space. Instructors could use Lululemon clothes, too, tying business together and combining hardware, software application, and retail.