Mirror, which is based in New York, expects to bring in over $100 million in revenue this year and either break even or be slightly profitable in 2021, Mr. McDonald said. Ms. Putnam, who will remain chief executive of Mirror and report directly to Mr. McDonald, said that the interactive fitness company had “tens of thousands of subscribers” and had seen its business accelerate during the coronavirus pandemic.
Home fitness products like Peloton and streaming classes have boomed during the pandemic. Gyms and fitness studios are largely closed, and many customers are nervous to return to those that have reopened. Lululemon said that while the pandemic was not the “trigger” for the purchase, it bolstered the case.
“It definitely has helped us learn and see quicker into the future now,” Mr. McDonald said. “Guests have accelerated their behavior and accelerated the adoption of in-home sweat.”
Lululemon, which is based in Vancouver, British Columbia, said it would promote Mirror online and sell its exercise machine in “a number of locations.” Mirror has only two physical locations. It has built a popular following online, including among celebrities like Reese Witherspoon, Alicia Keys and Ellen DeGeneres. Its classes include Pilates, barre, kickboxing and strength training.
The acquisition will also expand a “content creation partnership” between Mirror and Lululemon. Classes like meditation that are taught by Lululemon’s “global ambassadors” are already available on the Mirror platform. (A key part of Lululemon’s marketing strategy has long been to team up with people like athletes and yogis to promote its brand.)
Article source: https://www.nytimes.com/2020/06/29/business/lululemon-buys-mirror.html