Lululemon Athletica Inc. is seeking to promote its Mirror in-home health enterprise, in accordance with experiences Tuesday, three years after buying it for about $500 million.
Bloomberg News reported Tuesday morning that Lululemon
LULU,
was working with an adviser to solicit curiosity within the enterprise. Later within the day, CNBC reported that Hydrow, a non-public startup that makes in-home rowing machines, could also be a candidate to purchase the interactive exercise platform.
Lululemon introduced the deal to purchase Mirror in June 2020, across the top of pandemic lockdowns and as its inventory was hovering. But Mirror’s income by no means matched Lululemon’s expectations and has been weighing on the corporate’s backside line. In its fourth-quarter earnings report in March, Lululemon disclosed a $443 million impairment cost associated to Mirror.
Last October, Mirror was rebranded as Lululemon Studio, and its focus was shifted to a digital product.
“We don’t comment on rumors or speculation,” a Lululemon spokesperson stated in an e mail to MarketWatch late Tuesday. “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 greater than 16% 12 months up to now, however are nonetheless down 8% over the previous 12 months, in comparison with the S&P 500’s
SPX,
8% achieve in 2023 and seven% decline over the previous 12 months.
Source web site: www.marketwatch.com
