Lululemon Athletica Inc. is looking to sell its Mirror in-home fitness business, according to reports Tuesday, three years after acquiring it for about $500 million.
Bloomberg News reported Tuesday morning that Lululemon LULU, +1.12% was working with an adviser to solicit interest in the business. Later in the day, CNBC reported that Hydrow, a private startup that makes in-home rowing machines, may be a candidate to buy the interactive workout platform.
Lululemon announced the deal to buy Mirror in June 2020, around the height of pandemic lockdowns and as its stock was soaring. But Mirror’s revenue never matched Lululemon’s expectations and has been weighing on the company’s bottom line. In its fourth-quarter earnings report in March, Lululemon disclosed a $443 million impairment charge related to Mirror.
Last October, Mirror was rebranded as Lululemon Studio, and its focus was shifted to a digital product.
Lululemon did not immediately respond to MarketWatch’s request for confirmation or comment late Tuesday, but the company earlier told other media outlets: “We don’t comment on rumors or speculation. As previously announced, we are shifting the focus of Lululemon Studio from a hardware-centric offering to one that is also focused on digital app-based services going forward. This work is underway, and our strategy will enable us to create long-term value and build a larger community of guests with a deeper connection to Lululemon.”
Lululemon shares have jumped more than 16% year to date, but are still down 8% over the past 12 months, compared to the S&P 500’s SPX, +0.09% 8% gain in 2023 and 7% decline over the past year.
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