Lululemon Recalls Unintentionally See-Through Pants

LULU forced to lower sales growth forecast

   

Lululemon Recalls Unintentionally See-Through Pants

lululemon store 630 300x199 Lululemon Recalls Unintentionally See Through PantsClothing store Lululemon (NASDAQ:LULU) is recalling a huge amount of its yoga pants that become see-through when worn.

The store also said that it expects the recall — which covers about 17% of the pants it sells — to significantly impact its bottom line, reports CNN. LULU said it will lower its sales growth forecast from 11% to 5%-8% for stores open more than a year.

The stretchy pants become overly see-through when worn, despite having no apparent change in material or manufacturing. In a statement, the company said, “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 also said customers can expect a shortage of the pants until the problem is fixed and new garments are produced and distributed.

LULU shares were down 5% in premarket trading Tuesday.

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Article printed from InvestorPlace Media, http://investorplace.com/2013/03/lululemon-recalls-unintentionally-see-through-pants/.

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