Lululemon's 'Get Low' Leggings Return with Skin-Tone Underwear Advisory
Lululemon Athletica Inc. has reinstated its "Get Low" leggings for sale online in North America, but with significant new guidance for potential buyers. The company now advises customers to size up and pair the leggings with skin-tone, seamless underwear to address complaints about the fabric's sheerness.
Product Controversy and Temporary Halt
Sales of the "Get Low" collection were temporarily suspended last week following numerous customer complaints that the leggings were see-through and not "squat-proof." The controversy emerged just days after the product launch, prompting Lululemon to update its product education information with specific fit and sizing recommendations.
"We take our guests' feedback seriously," Lululemon stated on Thursday. "We have updated our product education information to incorporate new guidance on fit, sizing, and features to better support guest purchase decisions."
Founder's Criticism and Company Response
The drama surrounding the leggings sparked criticism from founder Chip Wilson, who called the situation a "total operational failure" and blamed the company's board. Despite the controversy, shares of Lululemon rose as much as 3.4 percent, partially recovering from earlier losses when news of the sales suspension first broke.
Interestingly, the new guidance about skin-tone underwear and sizing does not appear on product pages in Europe, where the leggings were never pulled from online sales.
Historical Context of Product Issues
This is far from the first time Lululemon has faced product-related challenges. Approximately 18 months ago, the company pulled its Breezethrough line after customers reported unflattering fits. In 2013, Lululemon recalled many of its black yoga pants following similar concerns about transparency.
Broader Company Challenges
The attention on the "Get Low" leggings adds to growing pressure for Lululemon, which is currently facing slowing growth and a stock that has lost nearly half its value over the past 12 months. The company is also navigating two activist investor battles.
Wilson, one of Lululemon's largest shareholders, took out a full-page advertisement in the Wall Street Journal last fall criticizing the company and later nominated three new board members. Meanwhile, Elliott Investment Management has built a stake exceeding US$1 billion in Lululemon and is reportedly pushing retail executive Jane Nielsen as a potential candidate to take over as chief executive.
Outgoing CEO Calvin McDonald is about a week away from his final day at the company, which will leave Lululemon with two interim CEOs during this transitional period.
