Lululemon Athletica Inc. is exploring a sale of Mirror, the fitness-equipment maker it acquired for US$500 million in 2020, according to pepole with knowledge of the matter.

Lululemon is working with an adviser to solicit interest in Mirror, said the people, who asked to not be identified discussing confidential information.

Lululemon’s shares were down 0.1 per cent to US$368.07 at 12:49 p.m. in New York on Monday, giving the company a market value of about US$47 billion. 

Mirror’s hardware sales have missed Lululemon’s projections and the Vancouver-based company took US$443 million in impairment charges on the business in the fourth quarter. 

The company, which at one point was selling Mirror products in-store, has pivoted to a digital and app-based product that it has rebranded as Lululemon Studio. But it isn’t eliminating the hardware — it’s just no longer a requirement. Luluemon, led by Chief Execitive Officer Calvin McDonald, has said its new app will launch this summer with a lower subscription rate.

“We don’t comment on rumors or speculation,” a representative for Lululemon said in a statement. “As previously announced, we are shifting the focus of Lululemon Studio from a hardware-centric offering to one that is also focused on digital app-based services going forward. This work is underway, and our strategy will enable us to create long-term value and build a larger community of guests with a deeper connection to Lululemon.”

Fitness-focused hardware companies have struggled since pandemic habits ended, sending consumers back to in-person or group workouts. Peloton Interactive Inc., for instance, has seen its stock slump roughly 92 per cent in the past two years, while Tonal’s CEO recently stepped down after the company raised funding at a significant discount to its prior valuation.