BY EMMANUEL OGBONNA

Lululemon Athletica said on Tuesday that it has temporarily paused online sales of its newly launched “Get Low” workout collection after customers raised concerns about the product, marking the latest setback for the athletic apparel maker as it navigates a period of heightened scrutiny and internal upheaval.

The Vancouver-based company said the collection remains available in its physical stores across North America but has been pulled from its e-commerce platform while the company reviews early customer reactions. A spokesperson said the decision was made to better understand initial feedback and to provide additional product education, adding that Lululemon expects to restore the line to its North American online channels in the near future.

The move followed complaints circulating on social media, particularly on Reddit, where users said the leggings in the new line appeared to be see-through when bending or squatting. Shortly after the complaints gained traction, the product page on Lululemon’s website became inaccessible, displaying an error message indicating a technical issue.

Industry observers said the episode highlights ongoing challenges in Lululemon’s product development process. David Swartz, an analyst at Morningstar, said the company has faced repeated issues with new launches in recent years and suggested that resolving them will be a key test for incoming leadership.

“It looks like the company has been struggling with product development for some time,” Swartz said. “This is something the new chief executive will need to get on top of.”

The online pause comes at a sensitive moment for Lululemon. In late December, company founder Chip Wilson launched a proxy fight, nominating three independent directors to the board in a bid to influence the company’s strategic direction. At the same time, activist investor Elliott Management has taken a stake of roughly $1 billion in the firm and has been pushing for changes, including backing former Ralph Lauren executive Jane Nielsen as a potential candidate for the top executive role.

Shares of Lululemon fell about 5 percent in afternoon trading, extending losses amid a broader market downturn and reflecting investor concern over both operational issues and corporate governance tensions.

Despite the turbulence, the company has pointed to signs of underlying strength in its business. Lululemon said last week that it expects fourth-quarter revenue and profit to land toward the high end of its previously issued forecast, citing strong demand during the holiday shopping season.

The latest controversy also revives memories of a similar episode last year. In 2024, Lululemon was forced to withdraw its “Breezethrough” leggings from stores and its website just weeks after their debut, following customer complaints about fit, fabric quality and seam construction. That pullback reduced the range of new women’s bottomwear available and drew criticism from shoppers and analysts alike.

As Lululemon works to address customer concerns over the “Get Low” line, the company faces growing pressure to demonstrate that it can maintain the product quality and innovation that helped build its brand, even as it confronts investor activism and leadership uncertainty.

Original article