Lululemon Athletica halted online sales of its recently launched "Get Low" workout line after receiving more than 300 customer complaints within the first 48 hours citing that the fabric was too sheer. The company removed all product listings from its North American and European websites within 24 hours of launch, suspending fulfillment of approximately 5,000 units that had been ordered through its digital channels. Management has convened a cross-functional quality review team, expects to complete material testing and design adjustments by late February, and aims to relaunch the collection in early March. The decision is projected to weigh on Lululemon’s e-commerce revenues in Q1, which represented 38% of total sales in Q4 2025.

Lululemon shares have declined nearly 50% year-over-year, trading at their lowest levels in over five years, a drop driven by macroeconomic headwinds and internal execution challenges. Activist investors have taken a stake, arguing that the stock significantly undervalues Lululemon’s long-term growth prospects. The company plans to accelerate its international expansion in Asia Pacific and enter two new European markets in 2026, targeting a 15% compound annual revenue growth outside North America over the next three years. With a strong balance sheet holding $1.2 billion in cash and equivalents and an undrawn $500 million revolving credit facility, Lululemon has authorized an additional $500 million share buyback program. Analysts estimate intrinsic value to be at least 25% above current levels, citing a durable brand moat and a growing direct-to-consumer channel.