Yogawear giant Lululemon Athletica Inc. (TSX:LLL; Nasdaq: LULU) warned today that botched production of black luon pants has forced it to pull the products from its shelves and that this will have a “significant impact” on their financial results, which are expected March 21.
The items represent about 17% of sales for all women’s pants.
“We have determined that certain shipments of product received from our factories and available in-store from March 1, 2013, do not meet our technical specifications,” Lululemon said in a March 18 statement.
“The items affected are certain styles of women’s bottoms in our signature black luon fabric. 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.”
Lululemon is also offering refunds to customers who bought black luon pants after March 1, either online or in its stores.
The news comes days before the yogawear giant reports quarterly earnings for the period that ended February 3. It also comes as rumours swirl that the chain seeks to open a new flagship Vancouver store at the southeast corner of Robson and Burrard streets, across from the future Victoria’s Secret location.
Lululemon told Business in Vancouver in an email that it does not confirm new locations until leases are final.
