Lululemon pulls "too revealing" yoga pants
Yoga pants on display at a Lululemon store in New York City. / CBS/JESSICA HARTOGS
Updated at 12:52 p.m. ET
NEW YORKLululemon has yanked its popular black yoga pants from store shelves after it found that the sheer material used was revealing too much of its loyal customers.
The company insisted it had not changed the specifications for the clothing, but is warning of a shortage of the extraordinarily popular clothing items, which make up make up about 17 percent of all women's pants and crop pants in its stores.
Shares dropped almost 5 percent in morning trading Tuesday and at least one analyst that follows the company stripped it of its "buy" rating.
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Sam Poser of Sterne, Agee & Leach advised clients to take a wait-and-see approach until the problem is resolved, downgraded 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.
The Luon pants are one of the retailer's product staples and Cowen analyst Faye Landes said that if there is any comfort to be found, it is that Lululemon is not facing a demand problem. Lululemon has been a star for investors, as well as yoga devotees, with shares rocketing from less than $3 in 2009, to around $65 this year.
But the announcement comes just before the company posts earnings for the final quarter and full year on Thursday.
Lululemon Athletica Inc., based in Vancouver, British Columbia, cut 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.
It also lowered its first-quarter outlook for comparable store revenues, from 11 percent, to 5 percent and 8 percent.
Lululemon is offering full refunds or exchanges to customers.
Its shares dropped $3.62, or 5.5 percent, to $62.30 by mid-day trading Tuesday.
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15 CommentsAdd a Comment
Get rid of them!
Enough with the stock implications....booooorrrrrriiinnnngggggg
Absolutely ridiculous.
First of all, women with les petit derriere(s) should be more than pleased with the attention, or wear tails,
Second, women with battleship butts and stovepipe legs are gonna be seen that way anyway, so what, its their right, who is the designer of the Dress Code, anyway, the Pope?
Three, if you are upset by this, just stay away from Malls and oversize stores,
And finally, who says Grandma's can't be sexy?
Yuck!
Tight clothes look bad!
Some people work VERY hard on their bodies. Let them wear what they want.
First of all, women with les petit derriere(s) should be more than pleased with the attention, or wear tails,
Second, women with battleship butts and stovepipe legs are gonna be seen that way anyway, so what, its their right, who is the designer of the Dress Code, anyway, the Pope?
Three, if you are upset by this, just stay away from Malls and oversize stores,
And finally, who says Grandma's can't be sexy?
They are disgusting and I'm sick of looking at them. Especially on women who are over 430! Grandma should not be in the grocery store wearing yoga pants! No one should !
Gross !!!
Where'd you come up with the number 430? 430lbs? LOL, I'm sorry, it's just such a specific number, and such a large weight. Wow.
Maybe you meant age, over 430 years old - obviously a typo of some kind. Still it was hilarious.
I question the logic - obviously it's a matter of perspective, but you used poor 'grandma' as the example - but then drew the conclusion 'no one should'. Nah, not no one. Some people are on their way to yoga class, c'mon.
It's just awful!
Put some real clothes on!