UPDATE 4-Lululemon says pants recall could dent profit by $40 mln
* See-through black pants pulled off shelves this week
* Company sees Q1 EPS $0.28-$0.30, vs $0.32 a year earlier
* Sees Q2 same-store sales flat or up by "low single digits"
* Same-store sales rose 10 pct in fourth quarter
* Shares rise 1.7 percent to C$66.47 in Toronto (Recasts, adds total profit impact in first paragraph.)
By Allison Martell
TORONTO, March 21 (Reuters) - Yogawear chain Lululemon Athletica Inc said on Thursday it could lose up to $40 million in profit this fiscal year because of its decision to pull defective workout pants from its shelves.
Despite the profit warning, Lululemon's shares rebounded slightly from a sharp decline earlier this week, when the company said it had discovered some of its signature stretchy pants were too easy to see through and customers could return them for refund. It said there would be product shortages as a result.
Investors may have feared worse damage and may have been reassured by Lululemon's report of a fourth-quarter profit that was slightly higher than it had forecast. Continued...