According to CNNMoney on March 19, the women’s clothing company Lululemon Athletica has had to recall a huge number of its popular black yoga pants due to a “coverage” issue. In fact, the pants are pretty much see-through.
A company statement released on Monday said, "We want you to Down Dog and Crow with confidence and we felt these pants didn't measure up." While the pants are made of the same ingredients as previous versions, and the longevity and quality of the pants promise to be the same, the fabric results in a “level of sheerness” that does not meet Lululemon standards.
The company has not released the exact number of items recalled, but did say that the recall accounts for nearly 17% of all women’s pants sold in the store. And unfortunately, the recall will create shortages of the product, and will affect the company’s financial performance for the entire year.
Prior to the recall, the company was expected to post year-over-year same-store sales increases of 11%; that number has now been reduced to 5 to 8%, with a reduction in 1st quarter sales of 4 to 5%.
The company has been a Wall Street darling, with the share price up over 1800% over the past three years. The recall has hit the stock price, though, with the company trading down 5% on Monday afternoon