Annals of business: yoga pants edition

Perhaps the greatest business story of all time.

The company is recalling yoga pants made with a fabric known as Luon that are overly transparent, which make up about 17 percent of all the Canada-based retailer’s women’s bottoms.

Lululemon’s chief executive, Christine Day, said Thursday that the company did not know exactly why the quality had gone awry, as the pants had passed quality-assurance tests. But she added that “the truth of the matter is that the only way that you can actually test for the issue is to put the pants on and bend over,” which the company did not do until too late.

The consequences could be significant for Lululemon, analysts said. The company redefined the athletic-apparel world, making it no big deal for women to spend $100 on yoga pants and wear them throughout the day. Its stores churn out high sales per square foot, offer amenities like yoga classes and running clubs, and cater to hard-core fans by offering store discounts to yoga instructors in exchange for product feedback.