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Lululemon Sheer Yoga Pants Undetected Until Bend-Over Test

Wall Street analysts from Robert W. Baird & Co. to Sterne Agee & Leach Inc. peppered Lululemon Athletica Inc. executives today with questions about how the yoga-wear retailer is handling a recall of women’s pants for being too transparent.

Lululemon said on March 18 that some shipments of its black Luon pants were too sheer and didn’t meet its standards. The shortage will reduce fiscal full-year earnings by as much as 27 cents a share, Lululemon said today. Analysts asked Chief Executive Officer Christine Day how employees were handling returns, whether the company was changing suppliers and how the pants made it out of the factory in the first place.