Business
Lululemon pants recall will hurt sales
Mar 18, 2013 / 2:30 pm
Lululemon Athletica Inc. (TSX:LLL) said Tuesday a problem with the sheerness in the material used for a batch of its hip-hugging black Luon pants and crops has forced it to pull them from its shelves and will cut into sales.
The athletic clothing retailer said it has pulled all of the affected black Luon women's bottoms from stores, showrooms and its website and is working with its supplier and other manufacturers to replace the fabric and replenish the inventory as quickly as possible.
"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.
Lululemon estimated that the affected items represent approximately 17 per cent of all women's bottoms in its stores, which will result in a shortage of the affected styles.
The company said the affected pants were available in its stores beginning on March 1.
Shoppers who bought black Luon pants after that date, either online or in stores, are welcome to return the defective pants, the Vancouver-based company said.
"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 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 company is expected to release its fourth-quarter results on Thursday.
Keeping store shelves filled has been a problem for Lululemon in the past.
In 2011, the company launched an initiative to boost its inventories to meet the growing demand of shoppers.
Shares in Lululemon, which announced the problems after the close of markets, were down $2.31 at $67.50 on the Toronto Stock Exchange.

Read more Business News
Today's Market
| S&P TSX | 12742.43 | +129.38 |
| S&P CDNX | 939.41 | +4.73 |
| DJIA | 15387.58 | +52.30 |
| Nasdaq | 3498.965 | +33.722 |
| S&P 500 | 1669.16 | +2.87 |
| Gold | 1378.20 | -6.1001 |
| Lumber | 316.00 | -4.50 |
| Oil | 95.89 | -0.82 |
| Natural Gas | 4.191 | +0.101 |
| CDN Dollar | 0.9738 | N/A |
_
Okanagan Companies
| Sun Rype | 6.25 | +0.25 |
| Pacific Safety | 0.05 | +0.005 |
| Knighthawk | 0.02 | 0.00 |
| QHR Technologies Inc | 0.61 | +0.06 |
| Cantex | 0.015 | 0.00 |
| Anavex Life Sciences | 0.55 | +0.02 |
| Metalex Ventures | 0.085 | +0.01 |
| Russel Metals | 27.15 | +0.50 |
| Copper Mountain Mining | 1.62 | +0.10 |
| Colorado Resources | 1.56 | +0.08 |
| ReliaBrand Inc | 0.13 | 0.00 |
_

Tips for a stress-free summer moveThe majority of Canadians prefer to make their big move during the summer season. There are a variety of reasons for choosing this time of year: it is easier to transport boxes in non-icy condition...
Income properties for sustained recoveryIt appears as though more people these days are looking for an investment in real estate which offers cash flow returns. The fundamentals of cash flow type properties had been turned upsi...
Get in the LoopGetintheloop Marketing Ltd. recently launched their membership platform, Getintheloop.ca. The new website offers an exclusive members area for access to discounts in the South Okanagan on premium res...
_
- Bangladesh to raise wages
- Open for business
- 'Gatsby' earns $51.1M, 'Iron Man' $72.5M
- Chrysler recalls nearly 470,000 SUVs
- Bell not interested in selling more Astral
- Loonie dips over a quarter
- Taxman and the offshore tax havens
- Sharktopus views turns on YouTube TV
- Social media makes Disney blink
- BCE looks to cut $170 million
- TD Bank: Loonie could fall to 90 cents US
- Mixed results for North American markets

Showcase your business like no other marketing can and Join the growing number of businesses that get more customers.
Learn more here














