Lululemon reportedly exploring a sale of Mirror, the struggling fitness tech brand it bought for $500 million
, at the height of the at-home fitness trend, but it has struggled to integrate it with its core business of selling athletic apparel and footwear, with one analyst on Monday writing that selling Mirror could eliminate a"distraction."
"We do believe that the commitment of Lululemon to Mirror has likely waned meaningfully, lately, and expect that management could opt to completely divest the business, to limit any further strategic distraction," wrote Oppenheimer analyst Brian Nagel, in a note to investors. Oppenheimer has an"outperform" rating on Lululemon's stock. Nagel also wrote that he had not confirmed the accuracy of the Bloomberg report.
While Lululemon's Mirror business has struggled, its overall business remains strong. Lululemon sales increased 30% to $8.1 billion last year. "We don't comment on rumors or speculation," Lululemon said in a statement provided to Insider."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.
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