It’s becoming clear that Lululemon (LULU) burned roughly $500 million in shareholder capital via the ill-timed purchase of the connected-fitness platform Mirror.
Buried in Lululemon’s late Tuesday earnings release — which was solid overall and drove shares higher as of Wednesday morning — was a $442.7 million post-tax impairment charge in the fourth quarter related to the Mirror business, which was meant to rival Peloton.
“The overall at-home fitness space remains challenged,” Lululemon CFO Meghan Frank said on the earnings call in explaining the impairment. “Mirror hardware sales during the holiday season came in below expectations.”
Source: Yahoo Finance
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