Lululemon Athletica is forced to recall a line of black yoga pants after they were discovered to be unintentionally see-through.
The pants account for 17% of all of Lululemon Athletica’s products sold in stores, making this a major loss for the company, and will significantly hinder its financial success this quarter.
The company was expecting an 11% sales gain with revenue landing between $350 million and $355 million in the first quarter which ends in April, but has since downgraded it to a 5-8% sales gain with revenue expected to be between $333 million and $343 million.
The problem is somewhat stupefying, as the company made no change in the manufacturing process, yet these pants were inexplicably more see-through.
Shares of Vancouver, B.C.-based Lululemon (NASDAQ:LULU) tumbled 7.5% in premarket trading Tuesday, with it falling almost another 4% shortly after opening.
James Gilbert | Elite.