News: Lululemon Athletica shares (ticker symbol: LULU) of stock fell sharply Tuesday after a yoga pants recall was announced. The yuppie brand of workout clothing was recalled over discovery of revealing or "too sheer" clothing. The black bottoms, commonly worn by top celebrities, were quickly yanked from shelves before wearers's half-moon went full-on. However, stock market share holders dumped about 7 percent, according to a Schaeffers.
Perhaps you've heard of the trendy retailer, made popular by a number of household celebrity names like Kelly Ripa and Reese Witherspoon? You're either in the group that wears the yoga gear during your Dolphin or Crane poses. Or maybe you're in the other group which dons the nylon and Lycra bottoms to look like you're getting your Bandha and Mudra on.
Then, there's the group that only is in the game to turn make a dollar out of fifteen cents: the investor.
If you are, check your shares of Lululemon Athletica; the stock plunged over today's yoga pants recall. The retailer warned that this quarter's sales and growth numbers will fall below expectations due to expected inventory shortages. Apparently, it will take some time to get the specs debacle with the supplier resolved.
The recall of the revealing yoga pants, at least seven Wall Street analysts downgraded LULU. In fact, UBS lowered its target price from $77 from $82, which signaled a bevy of puts. However, the stock is already down double-digits for the year.
The Lululemon recall only added fuel to the fire.
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