lululemon’s MIRROR acquisition and subsequent accounting charges
Examine capital-allocation risk in brand expansion through the acquisition closing disclosure and subsequent charges.
Updated Oct 22, 2026
Acquisition closing and cash consideration
On 2020/7/7, lululemon disclosed completion of its acquisition of all outstanding MIRROR shares. The disclosed purchase price was approximately $500.0 million in cash, subject to adjustments.
Keep subsequent charges distinct
For the final quarter of fiscal 2022, which ended 2023/1/29, the company reported $442.7 million of post-tax impairment and other charges related to MIRROR. This is neither impairment alone nor acquisition cash paid again in that quarter.
Brand extension and capital allocation
An apparel customer base alone does not establish the profitability of home fitness. The case supports separating acquisition consideration from subsequent accounting charges and evaluating retention, costs and cash flows in the new business independently.
Limits on investment conclusions
These sources do not establish Burry’s actual entry price, current position or realized returns. Subsequent charges for one acquisition also cannot establish lululemon’s present overall value or the future direction of AI markets.
Sources
- lululemon Form 8-K: MIRROR acquisition completedAccessed Oct 22, 2026
- lululemon fiscal 2022 results: MIRROR chargesAccessed Oct 22, 2026