Lululemon to Buy Mirror, a Fitness Start-Up, for $500 Million (Published 2020)

If lululemon were buying a standalone hardware business, I’d be skeptical of their ability to turn it into a stream of subscription revenue. But Mirror immediately gives lululemon a monthly charge on consumers’ credit cards, something they didn’t have before.

Here are my thoughts on the Lululemon acquisition of Mirror. No, it's not about Mirror selling more clothes. It's about Lulu’s core business, physical store retail, being in bad shape and no matter how great the Lulu brand is, there are only so many pants a store can sell. 1/8

Mirror isn’t a typical hardware company: they designed their business with recurring revenue in mind. While Sonos, GoPro and Fitbit struggled (well, are struggling) to start a product line that earns recurring revenue, companies like Mirror were built for it from the start. For $39 per month, subscribers get access to live and on-demand workout cla... See more

Additionally, the company’s ongoing focus on the needs and shifting demands of its community — the aforementioned factors driving a high Reassurance Multiple — led them to invest well in advance of the pandemic in relationships with leading digital companies like Mirror (US - investment) and Keep (China - partnership) that have paved the way for th... See more