Per Bloomberg
Back in the day, Lululemon reportedly bought Mirror for $500 million, but now, it's exploring its sale. This was the company's reportedly first acquisition, per CNBC, which closed in Q2 of 2020.
During that time, Lululemon CEO Calvin McDonald stated how they knew they could grow Mirro and that it was a revenue business. During that time, he said the company expected to make over $100 million in revenue that year.
McDonald: “The acquisition of Mirror is an exciting opportunity to build upon that vision... In itself it is a revenue business … and we know that we can continue to grow that... We see an entirely new model for incremental business.”
Lululemon's projects for Mirror's hardware sales have been missed, and the company "took $443 million in impairment charges" during the fourth quarter. A Lululemon representative gave a statement regarding what they are planning to do with the company.
“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.”
Despite the response, the company did not comment on the "rumors or speculations" regarding a potential sale of Mirror.
In early December of 2022, it was reported that Lululemon's unsold merchandise increased by 85% to $1.7 billion by the end of the quarter that ended on October 30. This happened despite the Black Friday sale and holiday shopping happening.
During the time of the report, Lululemon shares dropped by 12.27% as of 12:00 PM ET, December 9. This came as the company's shares were also down by 14.96% year-to-date, compared to the 17.45% drop in the S&P 500 during the time of the report.
See flow at unusualwhales.com/flow.
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