Lululemon fired the exec responsible for their controversial see-through stretch pants -- which is an absolute crime! The firing ... not the stretch pants. Those are awesome.
Trendy yoga brand Lululemon was forced to recall nearly $20 million worth of the company's black Luon yoga pants last week because they are see-through.
Lululemon, one of the world's most successful retailers, has pulled its popular Luon black yoga pants from stores after it found that the sheer material used was revealing too much of its loyal customers.
Lululemon is offering full refunds or exchanges.
The company insists it had not changed specifications for the clothing, but is warning of a shortage of the extraordinarily popular items.
The company's stock (LULU) plunged more than 5% Tuesday, to $62.38. At least one analyst that follows the company stripped it of its "buy" rating.
Sam Poser of Sterne, Agee & Leach advised clients to take a wait-and-see approach until the problem is resolved, downgrading the company's shares to "neutral."
There appears to be a "major quality control problem" in Asia where the "Luon" pants are made, Poser said. While Lululemon has used the same factories to make its fabrics since 2004, he said it doesn't seem as though the company has the proper oversight in place.
Lululemon Pants Controversy -- Company Fires Designer- VIDEO
Reviewed by Jennifer Lawrence
on
08:34
Rating: 5
Lululemon fired the exec responsible for their controversial see-through stretch pants -- which is an absolute crime! The firing ... not the stretch pants. Those are awesome.
Trendy yoga brand Lululemon was forced to recall nearly $20 million worth of the company's black Luon yoga pants last week because they are see-through.
Lululemon, one of the world's most successful retailers, has pulled its popular Luon black yoga pants from stores after it found that the sheer material used was revealing too much of its loyal customers.
Lululemon is offering full refunds or exchanges.
The company insists it had not changed specifications for the clothing, but is warning of a shortage of the extraordinarily popular items.
The company's stock (LULU) plunged more than 5% Tuesday, to $62.38. At least one analyst that follows the company stripped it of its "buy" rating.
Sam Poser of Sterne, Agee & Leach advised clients to take a wait-and-see approach until the problem is resolved, downgrading the company's shares to "neutral."
There appears to be a "major quality control problem" in Asia where the "Luon" pants are made, Poser said. While Lululemon has used the same factories to make its fabrics since 2004, he said it doesn't seem as though the company has the proper oversight in place.
