Thursday, 21 March 2013

Lululemon pulls yoga pants for being too revealing; shares plunge


Lululemon Athletica Inc. shares Tuesday from 2.76 percent to $ 64.08 (U.S.), the company's main product resulting in a failure to try to contain - this time with a problem yoga pants verticality Luon fabric with the brand of the company.

Lululemon stores through different styles to recall affects 17 percent of all women's funds.
Last July, the company received a color bleeding problems in some brightly colored pieces.

"The two black eyes for a brand that is supposed to be synonymous with quality in the market," Brian Sozzi, NBG Productions Over chief equities analyst says. "It is a window of opportunity for competitors Lululemon."

The pure black pants in stores from March 1.

Representatives of the company via Facebook to customers who do not know how to tell which are affected, and the company distribution into consideration.

Laura Klauberg, senior vice president and brand community, apologized to customers for the problem.
"We must do everything possible to solve the problem as soon as possible, and the key elements are the change."

"He is a long-term relationship with the customer brand fix this problem does not prevent this from happening again runs the risk," he told The Star.

"If the funds 17 percent of the stores in the recall of negative, we believe that the recent efforts to improve the product mix to changing the website of the company's signature Luon helped prevent damage to minimize," wrote the following note in Lululemon announced.

Lululemon December said the next two years, 15 countries, a cautious expansion plans. The company fourth quarter report on 21 March will.
Consequently, the company moved to its revenue guidance for the first quarter. Now, the company's first quarter revenue between 333 million and 343 million expected. The previous forecast of $ 350 million to $ 355 million. Analysts polled by FactSet expected results of $ 352.1 million.
With 5 percent and 8 percent to 11 percent in the first quarter comparable sales brought in its outlook.

Christina Chalmers, blog Lulumum Vancouver-based automaker said there was a problem with the Luon pants has been around since the beginning of 2012. He returned in the summer a pair of brown pants Luon because they are too steep.

"Your Luon bad bad it is, but the most surprising change from last year, that is. Pure thin clothes in the laundry," he said.

"They do not use. Luon or that the use of hard. Was Thick and felt like cotton," he said. "If your imperfections, they disguise. Was magic pants. Shows everything now."

Chalmers said that, last year, dozens of emails and comments from readers complaining about the declining quality of Luon fabric. Sudden withdrawal of black color only took her by surprise.

"I was kind of scratching your head because you know that this problem is going on for a while, but they claim that this new effect from 1 March."

Effect on store shelves the week of black pants were pulled. Lululemon full refunds or exchanges are offered to customers.

Roger Law, acclamation Textile Co. Ltd., a spokesman said that "Lululemon product introduced to the market and their customers are not comfortable with their blurred" Reuters said.

"We checked this morning and our order was in fact manufactured in accordance with your instructions."
Acclamation a supplier for over 10 years has been Lululemon.

BMO Capital Markets retail analyst John D. Morris clothes in a note to investors, wrote that he would be careful about Lululemon.

Toronto retail consultant Wendy Evans extensive experience in the field of textiles and quality. She grew up in the family business, Evans and Evans, who is a manufacturer and an agent of textile, fabrics imported from Canada and around the world.

However, it closed in the mid 1980s, Evans substances can go wrong in many ways to remember.
Do not go there., Over the years, of course, differences of opinion between the End User and mills.
"If you try something new - not always the first time and innovate in this business - and it seems they try something new," says Evans.

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