Lululemon recalls draw cords on women's top due to injury risk
By Solarina Ho
TORONTO (Reuters) - Lululemon Athletica Inc LULU.O, which was hit by a high-profile recall of overly sheer yoga pants in 2013, is recalling the drawstrings on more than 300,000 women's tops due to the risk of injury, but said the financial impact was not material.
The U.S. Consumer Product Safety Commission and Health Canada posted the joint recall with Lululemon on Thursday and said consumers should either remove the draw cord or contact Lululemon for a non-elastic replacement.
Stock in the premium yogawear company was still up about 0.3 percent at $67.62 on Nasdaq.
Shares of the Vancouver-based company had tumbled in 2013 and 2014 following the recall of the see-through pants, which ignited a series of public relations headaches. It led to an overhaul of the company's supply chain and the eventual departure of top veteran executives.
The latest recall, which was initiated by Lululemon, affects some 318,000 tops in a variety of styles sold in the United States and Canada between January 2008 and December 2014.
"Our main priority is ensuring our product works for our guests, and we believe this is the necessary proactive action," the company said in a statement.
"We assessed and accrued for the financial impact ... and do not consider this to be material to our business."
According to the recall, the elastic draw cord with hard plastic or metal tips in the neck area of some tops can snap back and cause injury if it is accidentally pulled. Continued...