In March 2013, The company sold some faulty pants that went see-through if you did the 'downward dog' yoga position. It took 6% off the stock.
$ 9.50
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Cities crack down on saggy pants – The Denver Post
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Lululemon CEO Explains How To Spot Defective Yoga Pants: 'Put The Pants On And Bend Over
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Lululemon's Recalled Yoga Pants Might Flash Your Downward Dog
The strategic difficulty was Lululemon's dependence on a single supplier for its stretchy Luon material.
The pants are so valuable to Lululemon that the company once sued Calvin Klein for making a pair a bit like them.
In 2007, Lululemon falsely claimed its clothes were made with seaweed.