Lululemon shipped see-through pants. Again.

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Today, we explore yoga pants.

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The take: Lululemon just proved it learnt nothing from a $67 million mistake.

What happened: The company yanked its new "Get Low" leggings from online sales Tuesday after Reddit users reported the fabric goes transparent during squats.

Why it matters: This is the second pulled collection in 18 months for a brand that charges $115 because customers trust the fabric.

What to watch: CEO Calvin McDonald's last day is January 31. No successor named.

Expensive pants that don't pass the squat test.

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Lululemon's whole business is charging double what competitors charge because customers believe the product is worth it.

Two pulled collections in 18 months makes that harder to believe.

Breezethrough in July 2024 got yanked for unflattering seams. Get Low got yanked for going see-through.

Different problems, same outcome: the thing you paid extra for didn't work.

Meanwhile, the grown-ups are fighting over the corner office. Elliott Management showed up with $1 billion and a CEO candidate, Jane Nielsen (ex-Ralph Lauren).

Founder Chip Wilson launched a proxy fight to install three new board directors, including Marc Maurer, former co-CEO of On Holding.

Both camps want new leadership.

Neither has said much about why the design team keeps approving fabric that fails basic gym tests.

The market punished the stock 6.5% for see-through leggings. But it rewarded the stock with a 6% gain when Elliott disclosed its stake in December.

Investors think new management fixes this. Maybe. But CEOs don't design leggings.

Someone in Vancouver keeps signing off on gym wear that goes transparent when you bend over.

That person's still there.

The new boss inherits them.

Pro: The company moved fast, holiday guidance stayed strong, and international sales grew 24% last quarter.

Con: Two pulled collections in 18 months guts the quality story that justifies $115 leggings.

Our read: Hermès prices, Primark problems. Something has to give.

[Primary] Founder Chip Wilson ran a full-page Wall Street Journal ad in late 2025, accusing the board of "complacency." He claimed Lululemon "lost 50% of its market cap earned from 'brand power.'"

At the time, it felt like a bitter founder airing grievances. After this week, it reads more like a warning nobody heeded. I couldn't track down the original ad PDF—if anyone has it, reply, and I'll link it in an email.

CNBC coverage here: CNBC

$67 million: What the 2013 see-through recall cost Lululemon in lost sales.

Globe and Mail

[Analysis] Elliott's playbook here looks a lot like Starbucks: show up with a billion dollars, bring your own CEO candidate, wait for the board to blink. At Starbucks, they have Brian Niccol. Globe and Mail

[Opinion] In November 2013, Wilson blamed women's bodies for the original sheer-pants mess. "Frankly, some women's bodies just don't actually work," he told Bloomberg TV. He's still the second-largest shareholder. ABC News

[Report] The interim co-CEOs will be CFO Meghan Frank and Chief Commercial Officer André Maestrini. Frank gets product and design. Maestrini gets global markets. Global Finance

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