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 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.
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.