Lululemon goes from Sheer to Scandelous! There’s a big recall issue amongst yoga pants manufactured and sold by Lulu which unintentionally features bit of a peekaboo effect.
The Eclat Textile Company, also a supplier for big clothiers like Gap and Under Armour, said nothing was different about these pants and Lululemon even approved and signed off on them, Eclat’s chief executive officer Roger Lo told the Wall Street Journal.
“All shipments to Lululemon went through a certification process which Lululemon had approved,” Eclat Chief Financial Officer Roger Lo said in an interview. “All the pants were manufactured according to the requirements set out in the contract with Lululemon.”
What’s in the risk of scaring away Lululemon’s main clientele if quality control doesn’t get some er,… control?
“With the black Luon pant recall Lulu has now had its fourth quality control issue in the last year,” Credit Suisse analyst Christian Buss said in a note to clients. “We see some potential that Lulu risks alienating its core customer base should quality control issues persist.”
After a two-thirds rise in shares last year, Lululemon is down nearly 18% so far in 2013. Shareholders are becoming skittish with the trend and unless things shape up quickly, it doesn’t bode well for the future.
Yoga Dork’s blog commented and posted a couple Lulu fan comments as follows:
Because of the 17% of yoga pants affected by this “too sheer” scare, lulu has already had to cut its first quarter sales forecast by about $20 million. Some could say that’s a manufacturing problem, some could say it was another manufactured strategy, in the form of a shady screw up.
This is nothing new, lulu fans say, and customers have been complaining for a while. Why are they making it a big deal now? Via Fashionista.com:
“Personally I think it’s a deflection and their numbers are going to be awful on Thursday [when the brand has a scheduled earnings call],” Carolyn Beauchesne, 48, who runs another popular Lulu fan blog, Lululemon Addict, told us. “It’s weird they’re owning up to it now.”
[Lululemon fan blog] Lulumum’s [Cristina] Chalmers agrees. “Now that sales have dropped they’re using it as an excuse to investors,” she said. “It’s a ‘solveable’ problem. If they didn’t have an explanation as to why the numbers are lower, then what can they solve?”
A scandal in see-through yoga clothing.
I think I’ll stick to looking for quality over a brand name so I may Ommmm without worry about my wallet AND keep myself in check- away from an unintentional peepshow in yoga class.