"We regret any inconvenience this has caused for our guests," Lululemon CEO Christine Day said in a statement."It is always our first priority to protect the quality of our fabrics Lululemon crops camo/red that keep our guest so loyal to our products. We will accept nothing less than the very highest quality we are known for."Up to March 17, Lululemon says it was on track for a comparable-store sales increase of 11 per cent on a constant dollar basis and revenue in a range of $350 million to $355 million for the first quarter of the year.
Lululemon now expects comparable-store sales to be up five to eight per cent and revenue in a range of $333 million to $343 million.The exercise empire Lululemon, which enjoys cult-like popularity, may have just had its first real crisis. The company had to recall 17% of its inventory due to fabric that made their famous yoga pants too sheer. People like to feel pretty natural and open when they are doing yoga, but not this natural. This recall seems to have analysts downgrading the brand dramatically.The company's shares fell in trading Tuesday, finishing the Lululemon crops camo/purple day down 2.8%. The Canadian company lowered expectations Tuesday as a result of the recall, projecting a 5 to 8% comparable same-store sales increase, rather than the 11% previously expected.
The real problem seems to be the Lulu competitors. Gap and Nike and other companies have caught on to the fact that people love yoga clothes that look really cool with a weird symbol on them. People love to wear yoga apparel even if they don't do yoga.So will Lulu lose it's devoted customer base? Well, maybe if they keep sending out see-through pants but they should be okay. People worship Lululemon, especially upper middle class women (a recession-proof customer base). The brand has inspired blogs such as "Lululemon Addict" and hundreds of Facebook groups devoted to celebrating the company. It also encourages its customers to embody the Lululemon lifestyle and chooses "ambassadors" in the community who can show others this better way of life. And by "better Lululemon crops camo/light purple way of life," we mean doing a lot of yoga and wearing a sweatshirt with a weirdly shaped saddle shoe on it (does that scare anyone else?).
Athletic apparel maker Lululemon Athletica will be hurt by a large recall of black yoga pants that were unintentionally see-through."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 said in a statement late Monday.Lululemon said the recall, which amounts to 17% of all women's pants sold in its stores, will cause shortages of this staple and have a significant impact lululemon outlet on its financial results.Before the recall, the company said it was on track for an 11% increase in sales at stores open at least a year, with revenue in the first quarter ending in April expected to come in between $350 million to $355 million. But now it expects only a 5% to 8% sales gain, and revenue of between $333 million to $343 million.