Lululemon Athletica has resumed offering its newly introduced 'Get Low' workout apparel on its website after a brief suspension provoked by customer complaints. The company decided last week to remove the collection following feedback indicating that some leggings became see-through when customers bent or squatted, compromising product expectations.
To address these concerns, Lululemon updated its product education content, incorporating detailed guidance on fit, sizing, and fabric features to aid consumers in making informed purchase decisions. A company spokesperson stated, "We have updated our product education information to incorporate new guidance on fit, sizing and features to better support guest purchase decisions."
The original complaint reports triggered a notable market reaction, with Lululemon’s share price falling by 6.5% on the Tuesday after the issues gained media attention. Adding to the situation, Chip Wilson, the company's founder and a major independent shareholder, publicly criticized the Lululemon board over the matter. Writing on LinkedIn, Wilson said, "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."
Wilson's censure comes amid an ongoing proxy fight he initiated in December wherein he nominated three independent directors to join the board, contesting corporate governance following the departure of CEO Calvin McDonald without a named successor. Concurrently, Lululemon is under activist investor pressure from Elliott Management, which acquired an approximate $1 billion stake in December and has collaborated with former Ralph Lauren executive Jane Nielsen, reportedly considered as a potential CEO candidate.
The recent controversy over the 'Get Low' line follows a similar episode earlier in 2024 when Lululemon had to withdraw its 'Breezethrough' leggings from physical stores and online after customers raised issues regarding fit, material quality, and seams. This incident resulted in a reduction of fresh options in the company’s women's bottomwear category.
The accumulation of product quality issues and leadership uncertainty places Lululemon at a critical juncture in retaining its technical apparel market position and responding to shareholder and consumer expectations.