Lululemon Athletica Inc.

is facing its second

see-through leggings issue

in less than a month.

A version of the

company’s pants

dubbed heart scatter has been called out for being see-through when bending and squatting, Keybanc Capital Markets analysts led by Ashley Owens said in a note, pointing to complaints about the product on Reddit. There are similar criticisms on Lululemon’s website.

Just weeks ago, the company was in the hot seat after its “Get Low” line was called out for similar problems. Lululemon ended up

pulling the line from its website

just days after it was released, and returning it to the website with added disclaimers that told shoppers to size up and pair the leggings with skin-toned underwear.

Lululemon didn’t immediately respond to a request for comment. Despite the criticisms, some sizes of the colorway are sold out online.

The company’s shares reversed gains and fell as much as 4.3 per cent after the news. The stock had already declined about 55 per cent over the last 12 months.

Under Pressure

Lululemon has been under pressure from investors as it tries revive slowing sales growth. It’s also looking for a new chief executive officer after Calvin McDonald recently left his post.

The impact of the latest product issue remains to be seen, but it hits at the larger critique of the retailer: It’s lost its way on innovation.

In recent years, the company drifted away from focusing on its core customer — yoga and fitness enthusiasts in search of high-quality basics — in favour of jumping on trends and getting products to market quickly. It’s also dabbled in personal care products and fitness equipment.

The missteps and shareholder losses have ramped up the stakes.

Chip Wilson

, Lululemon’s founder and one of its biggest investors, has launched a full-scale battle to shake up the company. He’s been joined investor Elliott Investment Management, which has taken a more than US$1 billion stake in the company.

—With assistance from Janet Freund.

Bloomberg.com

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