FashionStrategy

What Brands Can Learn From Lululemon’s Failed Mirror Acquisition

Brands can learn valuable lessons from Lululemon's failed Mirror acquisition, which resulted in a $443 million loss.

Published: Apr 4, 2023 12:07 PM

By Jeanel Alvarado

FashionStrategy

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FashionStrategy

What Brands Can Learn From Lululemon’s Failed Mirror Acquisition

Brands can learn valuable lessons from Lululemon’s failed Mirror acquisition, which resulted in a $443 million loss. The experience highlights the importance of understanding market dynamics, focusing on core competencies, and executing effective marketing strategies.

In June 2020, Lululemon acquired Mirror, an at-home fitness startup, for $500 million. Mirror, which competes with Peloton, offers a wall-mounted fitness device priced at $1,495, allowing users to stream live or on-demand workout classes for a monthly fee of $39.

View this post on Instagram A post shared by lululemon Studio (@lululemonstudio) The acquisition took place during the COVID-19 pandemic when people were confined to their homes and increasingly turning to home workouts.

Lululemon’s CEO, Calvin McDonald, emphasized that the acquisition was about strengthening the company’s community relationship with its guests, driving loyalty, and increasing customer engagement. Mirror’s growth potential, however, has been a subject of concern among analysts.

In December 2021, Lululemon slashed its outlook for Mirror sales to between $125 million and $130 million, down from the initial projection of $250 million to $275 million…

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What Brands Can Learn From Lululemon’s Failed Mirror Acquisition

Brands can learn valuable lessons from Lululemon's failed Mirror acquisition, which resulted in a $443 million loss.

Unlock the rest of this story

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