Lululemon Athletica Inc.’s problem isn’t just that a batch of its black yoga pants were made too sheer and had to be recalled — the popular retailer is now downgrading its financial predictions and watching its stock do a downward dog.
The Vancouver, British Columbia, company said late Monday that it pulled the women’s pants from its stores and e-commerce sites over the weekend after learning that the material was too revealing. The Luon fabric is produced in Vietnam and Taiwan and made with a mix of nylon and Lycra spandex fibers.
In a lengthy FAQ posted on its website, the chain said it was still investigating how a batch of too-skimpy pants was allowed to reach stores in early March. Lululemon hasn’t changed its manufacturers or ingredient quality since 2004, it said.
Lululemon is now offering affected customers full refunds or exchanges while also warning of an impending shortage of black yoga pants. The recalled apparel makes up 17 percent of the women’s pants and crop pants Lululemon sells in stores.
But it’s more than practitioners’ poses being affected — Lululemon said the “issue will have a significant impact" on its financials.
The company lowered its initial expectations, which had been an 11 percent increase in same-store sales. Now Lululemon is projecting a 5 to 8 percent same-store sales increase.