Lululemon Athletica has been forced to take its black yoga pants off the shelves because the sheer material reveals too much.
Lululemon said yesterday that it took the pants off its store shelves and website over the weekend due to an unacceptable “level of sheerness” created during the manufacturing process.
That means there will be a temporary shortage of its black Luon pants and crops.
The Canadian company said that it is not sure why the pants are so sheer since they haven’t changed the materials used, or changed manufacturers, but it is talking them to find out what happened during the time the fabric was made.
However, the Taiwanese supplier behind the pants today told Reuters that it had followed design specifications and Lululemon had merely misjudged customer tastes.
Eclat Textile Co Ltd, a supplier for Lululemon for more than ten years, said that “a gap between Lululemon’s expectations and reaction from the market” was the cause of the problem.
“We checked our orders this morning and indeed, we did follow their instructions to make the product,” said Roger Lo, a spokesperson at Eclat.
“Lulu has some new ideas every year, such as taking different approaches for fashion-related purposes.
“Lululemon introduced the product to the market and their customers are not comfortable with its opacity.”
Roger Lo said Lululemon had not contacted Eclat regarding the issue, but Eclat was willing to adjust production according to the retailer’s needs. He said any changes would not be due to quality issues.
Lululemon said that it believes the pants and crops affected by the recall make up about 17% of all women’s pants in its stores.
Its shares fell $3.45, or 5.2%, to $62.45 in premarket on Tuesday.
Lululemon said that shoppers who purchased 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% to 8%.
Previously, the chain predicted an 11% increase. This metric is a key indicator of a retailer’s health because it excludes results from stores recently opened or closed.
Lululemon 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.
