Wall Street expectations can really push a small company's "internal capacities perhaps way too far that mistakes creep up," says Brian Sozzi, chief equities analyst for independent research firm, NBG, and a contributor for TheStreet's sister Web site RealMoney.com.
But this is not a story about lululemon's supply issues, it's about how the company's swift and transparent action towards the yoga pant sheerness problem was a marketing win, experts say.
Dr. Baldwin's tweet gets to the essence of what's going on here: that if a problem is communicated effectively, it can be a win for the business.
"A recall can be a costly headache for a company, but if it is handled well, it can also be an opportunity to enhance the company's credibility and reputation. It's critical to be transparent and responsive to your customers during challenging situations. That is how you build a trusted and respected brand in the long run. People tend to remember how you made a tough situation right rather than the tough situation itself," says Annie Xu, U.S. general manager of Alibaba.com, a global e-commerce platform."I think what they're doing is brilliant," says Bernhard Schroeder, the director of San Diego State University's Lavin Entrepreneurship Center. "It's a hell of an FAQ. Very well done on their part and consistent messaging -