Lululemon, one of the top sellers of yoga pants, has yanked its popular products from store shelves after it was discovered that the sheer material used to make the pants was too revealing.
The company has warned that there may be a shortage of the clothing item while it tries to get its pants back up to the quality customers expect. Lululemon insists that the specifics for the clothing haven’t changed and that the problem with the “Luon” pants is based on a quality control issue. The pants are manufactured in Asia, according to Boston.com
According to the company, “the ingredients, weight and longevity qualities of the women’s black Luon bottoms remain the same but the coverage does not, resulting in a level of sheerness in some of our women’s black Luon bottoms that fall short of our very high standards.”
After news about the recall broke, shares of the company’s stock took a nosedive and plunged nearly 8 percent before the opening bell Tuesday. Lululemon, based in Vancouver, British Columbia, cut its first-quarter revenue forecast by millions of dollars as a result of the recall. The company was projecting earnings between $350 million to $355 million, but now anticipates bringing in only between $333 million and $343 million.
Prior to this incident, the company had been a hit with investors and yoga fans alike because of its quality products and its healthy stock prices. Lululemon investors who bought shares in the company for less than $3 in 2009 saw those shares increase in value to around $65 this year.
Lululemon is offering its customers full refunds or exchanges on the pants.