Lululemon cuts Mirror’s worth by 50% as gymnasium membership launch nears

Lululemon will temporarily slash the price of its Mirror home fitness equipment by about 50%, dropping the price to $795 as it works to generate interest in a new gym membership platform, the company announced Wednesday.

For $39 per month, members have access to 10,000+ online courses. You’ll also get 10% off Lululemon merchandise and discounts on in-person classes with studio partners like Pure Barre, Rumble, and YogaSix. Membership requires the purchase of a Mirror device, and current Mirror owners automatically become a member of the program for 12 months.

Lululemon will also launch a free membership program on October 5th, which will offer purchase rewards, free access to select Lululemon Studio courses, and early access to product drops.

Lululemon executives said the platform will help the company serve its customers more flexibly.

“The fitness needs of our guests have evolved, and Lululemon Studio is solving them by offering members access to fitness content from our world-class trainers and studio partners at home, on the go and live in studios across North America,” Chief Brand Officer Nikki Neuburger said in a press release.

Analysts weren’t immediately sold on the plan, given the problems facing other connected fitness companies.

“It appears that public companies are increasingly focusing on content rather than equipment,” Simeon Siegel, chief executive officer of BMO Capital Markets, said in an email to Insider. However, he wonders if companies can manufacture content and hardware at the same time.

“Like all businesses, connected fitness operators should focus on what makes them special. If it’s the gear, great. If it’s the content, fantastic,” Siegal said. “If it’s both, make sure you rate and price both appropriately. But that’s rare. And it’s difficult to be true to yourself, but the key.”

Lululemon acquired Mirror in July 2020 for $453 million. At the time, company insiders were skeptical about the technology, calling it “flawed” and wondering how it would fit into Lululemon’s long-term growth strategy.

At April’s Investor Day, Lululemon Digital Fitness CEO Michael Aragon said Mirror was a natural fit with the company’s business plan.

“Our goal is to build a platform that connects Lululemon guests who want to lead healthier lives,” he said. “The goal is simple: to be the go-to place for fitness and wellness.”

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