Did Lululemon Make a $500 Million Mistake?
Lululemon's (NASDAQ: LULU) $500 million acquisition in June 2020 of at-home fitness company Mirror hasn't panned out as management had hoped. And investors are starting to worry whether this was a huge waste of money.
On the fiscal 2021 third-quarter conference call, the booming apparel business lowered Mirror's full-year revenue guidance to between $125 million and $130 million (from $250 million to $275 million before). Although this is a rounding error for Lululemon's overall business, which is expected to generate greater than $2.1 billion in sales in the current quarter, it nonetheless begs an important question.
Was the Mirror purchase a mistake?
Source Fool.com
