Lululemon is restocking their inventory with their popular yoga pants after a costly mistake had the retailer recalling their "hot pant" merchandise.
The company-issued a recall to pull the pants in March when employees and customers discovered the pants were too sheer to wear when they bent over. Lululemon offered full refunds or exchanges after the wardrobe malfunction.
The yoga pants were supposed to account for 17 percent of the company's sales. In the wake of the recall, Lululemon reportedly fired their top product executives for the mistake.
Lululemon announced in a blog post that the re-engineered Luon material used to make the pants will minimize the stretching of the fabric.
"Basically, that means there's now more fabric across the bum so it's not stretched from the get-go," the retailer said in the blog post. "Luon is a knit fabric -- if you stretch a knit fabric far enough, it will go sheer. That's why the right fit is key."
Multiple reports stated analysts believe Lululemon could see a surge in sales revenue from the restock. Yoga pants range from $92 to $118.
"This is a core product of theirs, and if there's an ability for the product to be purchased, it will be," Camilo Lyon, a New York-based analyst for Canaccord Genuity Corp., who has a buy rating on the stock, told The Washington Post. "They needed to make sure the communication with the consumer was perfect, and for the most part they did a good job."
The hot pant retailer's stock rose 1.9 percent to $79.29 yesterday at the New York close. The stock has gained 24 percent since the day after the recall was announced.
Lululemon told The Washington Post it expects to lose $57 million to $67 million in sales from the recall. Lyon estimated a loss of $45 million in an April note to clients.
