Lululemon Athletica Inc. (NASDAQ: LULU) announced on March 18, that it recalled a line of black yoga pants from stores and its website after learning that the material was made too sheer and revealing. The issue seems to pertain to black luon pants.
Lululemon said the “issue will have a significant impact” on its financials. As a result of the recall, Lululemon lowered its guidance from an 11% increase in same-store sales to a range between 5% and 8%. Revenue had been forecasted to fall between $350 million and $355 million for its first fiscal quarter. Now, the projected revenue is within the range of $333 million and $343 million.
Lululemon is providing affected customers with full refunds or exchanges. However, the company expects a shortage of black yoga pants, which compromises 17% of the store’s pants.
Categories: Class Actions of Interest