Tuesday, after Lululemon Athletica, Inc. announced a recall on its popular yoga pants, stock for the company fell dramatically, according to Reuters; the news has created a buzz Wednesday morning. Monday evening the company announced the recall of one of its most popular products…yoga pants.
Lululemon stated that about 17% of the black pants that were made with “Luon” fabric and they were see-through. The company said that they expected about a $20 million loss from this latest error and that this would affect a great portion of their stock and Tuesday, those expected results were seen in the stock price.
This is the second issue that the company has had in the last year with the quality of their fabric. The pants cost approximately $100 and Lululemon has had considerable competition in the industry.
In July of 2012, Lululemon has some issues with the dye in some products that bled.
One year ago, Lululemon reported a 25% growth and it had expected an 11% growth earlier this year, but now an expected 5-8% growth for the quarter is expected.
See the video below for an explanation of the yoga pants recall and quality.
If you enjoyed reading this article, please click on the subscribe button above to receive an email when new articles are published by this examiner.
Sources: ABC News and Reuters
Recent articles from this Examiner (click on the link to read):