But unlike the company's 2013 debacle over see-through yoga pants, the latest incident isn't expected to take a serious toll on the company's brand or stock price in the long term.
On Thursday, the company announced it was recalling about 318,000 hoodies after a flurry of people reported injuries related to the elastic drawstrings around the neck.
"The issue is quality control -- they obviously, for whatever reason, have a problem with this!" said Howard Davidowitz, chairman of Davidowitz & Associates, a retail consulting and investment banking services firm. Still, he doesn't expect the latest recall to sink the company's shares as the recall in 2013 did.
"The pants -- that was the heart of their whole business -- it was about 40% of their sales," said Davidowitz. "So, when that went off the track, that caused a riot."
Hoodies are a much smaller part of the company's sales, and replacing the elastic drawstring is a relatively easy fix.
"I don't think it will damage the brand the way the Luon pants did a couple of years ago," said Susan Anderson, a vice president and senior analyst at FBR Capital Markets & Co. "You can go to the store and exchange the jacket for a new one or one with the correct ties that don't snap back in your face. Whereas with the Luon pants, there was a shortage of them because they had to remake everything."