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• Amazon executive Michael Aragon will be the new Chief Executive Officer of Lululemon's at-home gym business, Mirror
• Lululemon bought Mirror for $500 million in 2020
Lululemon announced on Thursday that former Amazon executive Michael Aragon would be the new chief executive officer of its at-home gym business, Mirror.
The company said in a press release that Aragon would also lead the retailer's broader digital fitness aspirations, with the changes being effective from January 17. Aragon will report directly to CEO Calvin McDonald.
In 2020, Lululemon bought Mirror for $500 million. Mirror was founded in 2016 by Brynn Putnam, who stepped down as chief executive of the company in September.
Aragon was the chief content officer at Twitch, Amazon's live-streaming business, and previously worked for Sony Group.
Mirror faces intense competition from rivals such as Peloton, Tonal, Hydrow, and others. The category gained massive popularity during the coronavirus pandemic as people shifted towards working out at home.
Lululemon had in December reduced forecast for Mirror sales in fiscal 2021 to between $125 million and $130 million, compared to earlier forecast of $250 million to $275 million for the device.
Nike lawsuit
Lululemon is also accused of patent infringement by Nike over Mirror fitness device and related mobile applications.
Nike filed a lawsuit on Wednesday against Lululemon for the same.
Nike said Lululemon is infringing a number of fitness equipment patents held by the company by selling Mirror, a wall-mounted device helping users with several cardio classes and other exercises.
"The patents in question are overly broad and invalid. We are confident in our position and look forward to defending it in court," said a spokesperson for Lululemon, CNBC reported.
Lululemon shares closed the day up 1.7% at $368.77.
Picture Credits: Lululemon