Looks like Lululemon may have benefitted from all the publicity it recently got from the catastrophe of see-through Yoga pants.
Apparently shares of Lululemon’s stock have taken off since the whole issue, and have climbed precipitously.
This might be due to Lulu’s fast reaction to the sheer pants issue with the announcement that they are planning on replacing all their pants by June.
“We now believe a replenishment cycle of pants could begin to arrive on store shelves over the next 30 to 45 days (mid-second-quarter), much sooner than the early third quarter as implied by company guidance,” analyst Camilio Lyon at Canaccord Genuity wrote in a note to clients after conversations with supply chain contacts.
And on the idea that Lulu has taken a hit:
“We believe demand for Lululemon gear has not suffered from this transitory quality control issue, and likely benefited from the publicity.”
Lululemon’s fast reaction combined with the resignation of Sheree Watson (chief product officer) seems to have calmed investors.
The graph below shows Lulu’s stock this month
But even though the stock value has increased, the total loss of the whole blunder will be around 67 million.
Perhaps this will be looked upon in the future as a great and accidental advertising campaign…but who knows.
Or maybe it was all a conspiracy, and Lululemon is full of brilliant people trying to increase their stock value.
Either way, just a strange event all together. And I must admit, I have been writing an awful lot about Lulu lately.
What do you think? Will Lululemon ultimately benefit from the sheer pants, or is this just a quick fluke that is soon to go away? Post below!!