Lululemon: unflattering pose - FT.com Breathe deeply. This has not been a good year for Lululemon Athletica. The maker of pricey yoga and athletic wear had developed a cult following and grown impressively. But it lost its balance in 2013. There was a costly recall of its signature yoga pants after a batch turned out to be too sheer. When complaints about the products persisted, Chip Wilson, Lululemon's billionaire founder, said some women's bodies were not right for the clothes. The company this week warned that the current quarter was shaping up below expectations. Lululemon needs to put its problems behind it. New management is a good start. Mr Wilson has resigned as chairman but will stay on the board. Laurent Potdevin, who was appointed chief executive this week, looks like the right fit. Mr Potdevin replaces Christine Day, who resigned earlier this year. He started his career at LVMH, held numerous positions at Burton Snowboards, and hails most recently from TOMS, a socially conscious footwear company popular with hipsters. Mr Potdevin has the qualifications to run a brand like Lululemon and should help to improve its image. Lululemon's net revenues had been growing at a compound annual rate of 39 per cent from 2010 to 2012. This year, revenues are expected to increase by 17 per cent. The recall and supply chain issues weighed on sales as Lululemon works to ensure quality. The current quarter will be tough, too, because this holiday season is particularly promotional - not an ideal environment for a retailer that sells at premium prices. The supply chain issues will be resolved, but not immediately; Lululemon says improvements are a "journey." A big question is how much of the slowdown came from customer defections prompted by this year's flaps and whether they will return when the supply does. Lululemon's shares are down 30 per cent from a high of $83 in June, including a 15 per cent drop this week. But the stock still trades at 27 times forward earnings. That reflects confidence that the company's following remains intact. Unless the management can get Lululemon back on track in the US and expand internationally, it looks a stretch.