Athletic apparel retailer, Lululemon Athletica (NASDAQ: LULU) is struggling big time to sell off Mirror, a low-tech fitness gadget that it had bought for $500 million at the height of the pandemic back in 2020, according to a report by the New York Post.
The report cited insiders that this is even after LULU has slashed the value it paid for the device by as much as 90% to just $58 million. The drastic writedown in the value of the asset underscores how eager the company is to dispose of the sinking asset, a source told New York Post.
The report quoted the source as saying, “If you’re selling something today in this market, you’re probably in trouble. It’s not the time to be selling something — no one is buying things at high multiples.”
Mirror is a 56-inch, well, mirror with a camera that enables instructors and friends to see users during workout classes.
Analysts are cautiously optimistic about LULU stock with a Moderate Buy consensus rating based on 22 Buys, two Holds, and three Sells.
