Lululemon Restores Controversial Leggings On Online Store, Lifting Shares

Update (Thursday):

Lululemon Athletica shares in New York rose about 1% around lunchtime after the company returned the Get Low line to its e-commerce store. On the session, shares were up roughly 2.8%.

Earlier in the week, Lululemon pulled the new training apparel line from its North America e-commerce website just days after launch, following an uproar on social media over claims that the leggings were see-through.

Welcome back, Get Low line …

Meanwhile, Lululemon founder Chip Wilson blasted the Board in a social media post:

This is a new low for lululemon. Pulling back the “Get Low” product line after three days is clearly a total operational failure. This comes just 17 months after the failed launch of the “Breezethrough” leggings, a product line also discontinued for similar product flaws. I’ve believed that lululemon has lost its cool for some time, but it is now evident to me that the Company has completely lost its way as a leader in technical apparel. For years, lululemon’s results (particularly in North America) have shown how the Company has struggled to deliver products that are compelling and beloved; now it is unable to simply deliver products that work.

Despite any finger pointing internally following this mishap, this is not the fault of any hard-working employees. This is the fault of the Board. It is clear that persistent failures like this are born out of this Board’s lack of experience in creative businesses, disinterest in product development and quality, and focus on short-term, self-interested priorities. How could anyone reach a conclusion other than the Board continues to make decisions that are destroying the brand and the stock price?

What product quality testing did the Board review? How often does the Board review the product pipeline? Are leaders empowered to make the best product decision or simply pushed to the lowest cost decision?

I believe a leading Board would have a Brand Product Committee and have asked these questions.

Taking another look at the Get Low line.

And again.

Lululemon’s path back to relevancy in the athletic space may require a shake-up of the Board.

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Lululemon Athletica yanked its new Get Low training apparel line from its North America e-commerce website just days after launch, following customer complaints that the leggings were see-through.

“The Get Low line has officially been pulled. The leggings are absolutely see-through when you squat or bend over (in every colorway). You can bring them into any store and trade them for a different legging even if they have been worn, FYI. They didn’t pull them from stores, so I don’t know what Lululemon is thinking. The tops are great, in my opinion,” a viral post on the r/lululemon subreddit stated two days ago.

A spokesperson for Lululemon Athletica told Bloomberg that the entire “collection remains available in our stores in North America, but we have temporarily paused sales online in the market to better understand some initial guest feedback and support with product education.”

“We expect to bring the collection back to our North America e-commerce channels soon, and the collection continues to be available in other markets,” Lululemon said.

JPMorgan analyst Matthew Boss told clients that the Get Low training apparel was removed from the company’s website just three days after its debut. He said complaints on social media were mostly centered on the tights, with customers describing them as “not squat proof.”

Shares of LULU were down more than 5% in late afternoon trading on Tuesday. This is not Lululemon’s first product debut fumble. In 2013, the company was forced to recall large amounts of its black yoga pants after customers complained that the leggings were see-through.