Article Hero

Lululemon to pay $500 million for start-up Mirror

1593520429.jpg
Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Lululemon expands in the at-home fitness field.

Lululemon, the Delaware athletic apparel, is making moves on the market. After it announced that it would temporarily stop the partnership with Facebook regarding paid ads, it is now considering diversifying its sales.  

Yesterday, the company announced that it would purchase the Mirror startup for $500 million. Mirror consists of a $1,495/reflective display through which subscribers can exercise while they stream the workouts and watch themselves. Mirror expects to have revenue of over $100 million this year and to register profit or at least break-even in 2021. 

The move seems to be thoroughly calculated, as the pandemic forced people to stay indoors and perform their workouts there. For Lululemon, the net sales dropped in the first quarter by 17%, even though online sales increased by 70%. One of Mirror’s competitors, Peloton, reported a 66% increase in revenue in the last quarter from people subscribing to its program. 

Purchasing Mirror offers Lululemon a paycheck from a different business while it is still in the same sector, as Mirror will be a standalone company within the latter. The deal is to be closed in the second fiscal quarter of 2020.

Lululemon stock price gained 4% in after-market trading. 

The fitness struggles to stay alive and kicking! Read more about it on CAPEX.com!

Sources: theverge.com, cnbc.com.


This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.