Lululemon recalls yoga pants, says they are too sheer and will be in short supply for awhile
NEW YORK — LuLulemon Athletica has taken its black yoga pants off the shelves because the sheer material reveals too much.
The Canadian company said that it took the pants off its store shelves and website over the weekend. That means there will be a temporary shortage of its black Luon pants and crops.
Its shares fell $3.45, or 5.2 per cent, to $62.45 in premarket on Tuesday.
Lululemon said that it believes the pants and crops affected by the recall make up about 17 per cent of all women’s pants in its stores.
Lululemon said that shoppers that bought the pants at its stores or online after March 1 can return them for a full refund or exchange.
Lululemon Athletica Inc. is cutting its first-quarter revenue forecast as a result of the recall. The company now anticipates first-quarter revenue between $333 million and $343 million. Its prior guidance was for $350 million to $355 million. Analysts polled by FactSet expect revenue of $352.1 million.
Lululemon also lowered its first-quarter outlook for revenue at stores open at least a year. The company now foresees the figure rising 5 per cent to 8 per cent. Previously, the chain predicted an 11 per cent increase. This metric is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.
The company said it is still trying to figure out what impact the recall will have on its first-quarter earnings and on the remainder of the year. It will give more information on Thursday when it holds its fourth-quarter earnings conference call.