The athletic apparel and accessories brand is rolling out the at-home fitness machine to 40 stores in Canada, increasing the number of Lululemon stores with Mirror to around 200 in North America and upping the brand’s stake in the at-home fitness market.
“Community is at the heart of Lululemon,” said Celeste Burgoyne, president, Americas and Global Guest Innovation at Lululemon. “And bringing Mirror to Canada enables more guests to interact with our growing collective and experience a digital Sweatlife offering like never before.
“We have seen rapid growth and strong engagement for Mirror since launching in the United States and look forward to deepening our roots at home in Canada,” she added.
Starting today, guests in Canada can try out Mirror in select stores. Then, on Nov. 22, Lululemon will be able to purchase the device in stores and by way of the Canadian e-commerce business. The period between Oct. 7 and Nov. 21 will serve as an in-store testing and sign-up-to-buy period. In addition, Mirror “educators” will be on hand in all 40 stores to answer questions about the product. Guests who sign up before Nov. 22 will also receive a limited-edition Canadian launch price, as well as a $250 CAD gift certificate.
Lululemon acquired Mirror in the summer of 2020 for $500 million, after taking a minority stake in the start-up the previous year, in an attempt to gain access to the at-home fitness industry — one that includes the likes of Peloton and Hydrow Rower — amid the pandemic. Mirror, which was launched in 2018, offers live and on-demand fitness sessions, as well as one-on-one training sessions, at home.
As of September, Lululemon had approximately 150 Mirror shops-in-shop in Lululemon stores. But McDonald said the company plans to increase that to closer to 200 for the upcoming holiday season. (Mirror made its first appearance in Lululemon stores Stateside back in November 2020.)
The company previously said it expects Mirror to generate revenues of about $150 million annually.
“We’re just at the beginning of our journey with Mirror,” Calvin McDonald, Lululemon’s chief executive officer, said in December 2020.
As of the following September, the CEO told analysts during the company’s quarterly conference call that Mirror was creating loyalty and causing more customers to engage with the overall brand, including more men than had originally been anticipated.
“We have our eyes on the long game with Mirror and the community we’re building,” McDonald said.
The company didn’t break down Mirror’s revenues during the most recent quarter, but did say that Lululemon’s earnings-per-share guidance included dilution from Mirror in the 3 percent to 5 percent range, excluding acquisition and integration-related costs.
“In terms of breakeven, we haven’t put a fine point on that, but we are focused, as Calvin mentioned, on rolling out initiatives for 2021, including store ramp, Canada entry and e-commerce website rebound,” Meghan Frank, Lululemon’s chief financial officer, said on the September conference call. “The path to profitability there for Mirror is very much within our control and we’re investing behind the strength and momentum in that business, as well as our overall financial strength.”
McDonald added that current challenges for Mirror include low customer awareness rates and digital marketing expenses.
“Those costs in the market are rising, which has an impact ultimately into [customer acquisition costs],” he said. “But the number of guests that are converting when they see those [Mirror] ads, and ultimately convert to buy once they work their way down through the funnel, are all at or above where we’ve been trending and are very healthy. So, we’re working toward [getting Mirror] in front of guests.”
Meanwhile, the company — along with the overall athletic apparel industry — continues to be on fire. Lululemon’s revenues shot up 61 percent in the most recent quarter, year-over-year, helping the company log a $208 million profit. The company raised its full-year guidance as a result. Shares of Lululemon are up approximately 21 percent, year-over-year.
Lululemon also recently entered into a multiyear partnership to outfit Team Canada for the Olympic and Paralympic Winter Games.