Lululemon Pulls Yoga Pants — Too Sheer
(CNN) — Lululemon Athletica will be hurt by a large recall of black yoga pants that were unintentionally see-through.
“The ingredients, weight and longevity qualities of the pants remain the same, but the coverage does not, resulting in a level of sheerness in some of our women’s black Luon bottoms that falls short of our very high standards,” the company said in a statement late Monday. “We want you to Down Dog and Crow with confidence and we felt these pants didn’t measure up.”
Lululemon said the recall, which amounts to 17% of all women’s pants sold in its stores, will cause shortages of this staple and have a significant impact on its financial results.
Before the recall, the company said it was on track for an 11% increase in sales at stores open at least a year, with revenue in the first quarter expected to come in between $350 million and $355 million.
Now it expects only a 5% to 8% sales gain, and revenue of between $333 million and $343 million.
The company said the problem occurred despite there being no change in manufacture or the ingredients used to make the fabric.
The store has been a fast-growing success story. Sales have tripled in the past three years; results for the most recent fiscal year are due Thursday.
The stock is up 1,800% over the past four years.
Lululemon (LULU) shares were down more than 4% Tuesday morning, and are down 17% for the year.