The popular, high-end yoga clothing company Lululemon took a sizeable hit in the stock market after it yanked yoga pants from shelves over the weekend, saying the pants were too see-through to meet company standards.
Lululemon Athletica Inc., which sells premium yoga-inspired clothing and boasts an almost fanatical following, ended with a closing stock price of $64.08, dropping 2.76 percent since the “recall” announcement.
The company’s stock initially saw a bigger drop of more than 5 percent in early bidding hours Tuesday morning.
The drop came after the company announced Monday that their black Luon bottoms fall “short of our very high standards."
The company makes pants that range in price from $88 to $128, according to its retail site. Lululemon brought in $1 billion in revenue last year.
The Vancouver, B.C.-based company said in a statement that it promised to replace the affected 17 percent of pants on shelves as soon as possible.
Lululemon said it became aware of the problem with the nylon and Lycra spandex pants during a conference call with store managers.
"Some of our store managers expressed concern over the sheerness of some of our women’s black luon bottoms," the company said in an FAQ on its website.
A Lululemon’s Brentwood store employee said they pulled the pants from the shelves per the company’s instruction. She declined to comment further, saying the company instructed its employees not to answer questions about the pants.
The company has used the same Taiwan-based factory since 2004, Lululemon said in the statement.
"We are working closely with our manufacturing partner to understand what happened during the period this specific fabric was made," the company said in the FAQ.
Customers who purchased the thin stretch pants after March 1 either online or in stores are invited to get a full refund or exchange.