Lululemon Is Defying One Of Its Core Values After The Sheer Yoga Pants Scandal

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Lululemon is discounting its black luon yoga pants after the sheer pants debacle that resulted in a massive recall. 

Brian Sozzi, chief equities strategist at Belus Capital, noticed a pair of the pants marked down at a Philadelphia store.

D ozens of customers also tweeted their delight at finding a sale rack in stores. 

But the discounts are problematic because it shows that Lululemon is desperate to get customers back in stores, Sozzi said.  The company had to recall 17% of its bottoms last month after they were deemed too see-through.

" The company has lost some consumer trust, and just wants to move product quickly and then re-market the new stuff as it arrives," Sozzi said. "But discounting now is basically cheapening future black luon pants."

Putting items on sale goes against a core part of Lululemon's strategy. 

The company's stores stock very few of each item, and sell 95% of merchandise at full price. 

This creates the illusion of scarcity and creates "fanatical" shoppers, CEO Christine Day told The Wall Street Journal.

In fact, when the company holds its annual warehouse sale, customers have been known to travel from all over the U.S. to attend. 

But the yoga pants recall resulted in distrust from long-time customers. If women shell out $98 for yoga pants, they expect quality. 

Lululemon has identified the defect that caused the sheer pants, and has assured customers and investors that it won't happen again. 

But the discounted pants show that the retailer hasn't fully recovered. 



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