Lululemon Anticipating Even More Write-Offs on Controversial Pants

This article was last updated on April 16, 2022

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

Lululemon Athletica Inc. has anticipated to write off all of its iconic yoga pants that are even yet to be delivered for the summer season, however, they wouldn’t identify the time when their key product might return to stores. During a conference call to discuss the earnings of company’s fourth-quarter, it was highlighted that the issue of unacceptably see-through yoga pants was seeding since March 1 shipment, which was recalled last weekend until the products that are currently in the lineup at the factories or being shipped.

The company officials agreed that that write-offs might lessen the revenue by another $45 million to $50 million overall in the year. Which will follow a loss of $12 million to $17 million in the first quarter, which ends in the spring. Even though company officials are currently examining the liability or partial reparability of the summer product, it is strongly believed that a complete write-off is more likely.

Chief Executive, Christine Day, revealed that there is a large quantity of product currently on the water, which is scheduled to arrive in the next couple of days, so the company shall have a better understanding of the extent of the problem in a week or so. Ms. Day apologized for the quality problem, and assured that the company has increased its staff and stricken controls for preventing it from happening again. She mentioned during the call, that “the only way to test for the problem is to put the pants on and bend over.” She explained that “it wasn’t till we got it in store and started putting it on people that we actually saw the issue.”