While members love our content, hardware sales did not match our expectations." Lululemon's year-over-year total revenue increased 30% to $2.8 billion in 2022, but the company took $443 million in impairment charges related to Mirror in the fourth quarter. "We are pivoting away from the hardware-centric business that we acquired to also focus on a more efficient app-based model," Lululemon said in its Q4 2022 earnings call. Mirror's struggles are on par with other hardware-focused fitness companies as customers inch back toward pre-pandemic levels of gym visits.