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Black Luon Pants Shortage Expected

lululemon athletica inc. [NASDAQ: LULU; TSX: LLL] today notified guests that we expect a shortage in our supply of black Luon pants and crops.

We have determined that certain shipments of product received from our factories and available in store from March 1, 2013 do not meet our technical specifications. The items affected are certain styles of women’s bottoms in our signature black Luon fabric. The ingredients, weight and longevity qualities of the pants remain the same but the coverage does not, resulting in a level of sheerness in some of our women’s black Luon bottoms that falls short of our very high standards.

Over the past weekend we pulled all of the affected black Luon women’s bottoms from our stores, showrooms and e-commerce site and are working with our supplier to replace the fabric and our other manufacturers to replace these key items as quickly as possible. We believe the affected items represented approximately 17% of all women’s bottoms in our stores and for the near term there will be a shortage of these styles available to our guests.

“We regret any inconvenience this has caused for our guests. It is always our first priority to protect the quality of our fabrics that keep our guest so loyal to our products. We will accept nothing less than the very highest quality we are known for,” said lululemon CEO Christine Day.

We have used the same manufacturing partner on key fabrics since 2004. This event is not the result of changing manufacturers or quality of ingredients. We are working closely with them to understand what happened during the period this fabric was made.

Guests who purchased black Luon pants after March 1st, either online or in stores, and believe they have affected product are welcome to return the product for a full refund or exchange. Please contact our Guest Education Center at 1-877-263-9300 with questions as to how to return items purchased through our e-commerce site.

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