Since LULU does recall those pants, I believe they are honest about the situation. It is an one-time event, I will hold on my stocks and maybe add more shares if it is oversold. Keep it in mind that institutional holding is very high, I don't think they would do panic sell.
The problem is that a sales miss is just that....a sales miss. However, a product recall is much WORST than a sales miss. There are so many costs involved on a product recall, let alone the cost of goodwill.
There is something fundamentally deeper than meets the eye...
Afterhours volume was light! That is the key and the fact it has dropped from high 70s in the last couple of months. Way oversold and it is the womens' athletic brand; sort of like Nike for women. I have felt that way for years.