$LULU Sheer Pants Redux

02/03/14 09:32AM EST

LULU - Lululemon 'Inadvertently' Sold A Bunch Of Sheer Pants Again

$LULU Sheer Pants Redux - lu

  • "Once again, the yoga retailer's customers are complaining about sheerness, this time after an online warehouse sale in Canada."
  • "While the items came with a tag saying 'things don't always go as planned, this garment has fit, function, or visual imperfections,' the defects apparently weren't disclosed at the point of sale online."
  • "A Lululemon spokesperson confirmed to us that some defective pants were sold to customers without proper disclosure. 'This is the first time we’ve had an online warehouse sale, which included a variety of items. Some items with a 'things don’t always go as planned' tag inadvertently ended up in our inventory,' the spokeswoman said."

Quick Take from Hedgeye Retail Analyst Brian McGough: Is this really the way to rebuild customer loyalty LULU? Unfortunately for the company, it is in a fishbowl right now. Everyone is watching its every move and is criticizing them accordingly. Is it fair? Nope. But life isn't fair and Lululemon made its own bed. Now it has to sleep in it. 

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