Get All Access for $5/mo

Lululemon Messes Up... Again 'You always hear the phrase that any PR is good PR. What we learned is that's not always the case,' the athletic clothing company's CFO admitted.

By Laura Entis

Opinions expressed by Entrepreneur contributors are their own.

Lululemon had a disastrous 2013. First, the Vancouver, Canada-based athletic retailer was forced to recall a line of yoga pants, after the awkward revelation that they were essentially see-through. Then, in November, founder and then company chairman Chip Wilson, in a terribly misguided bout of defensive posturing, told Bloomberg TV that "some women's bodies just don't actually work" for the company's clothing, implying that if your thighs deem to touch, you should probably shop elsewhere.

Unsurprisingly, the comment did not sit well with the company's primarily female customer base. A month later, Wilson resigned as chairman, effective this June.

If the retailer was hoping to turn around its image this year, it's not off to the greatest start. That's right: Lululemon has screwed up again.

Related: How to Avoid a Product Recall: Quality Control Essentials

In its latest misfire, the retailer banned customers who had sold Lululemon products on eBay from buying merchandise online, reportedly blacklisting their IP addresses.

While the policy was intended to stop large amounts of inventory from being sold at a higher price online, Therese Hayes, senior vice president of communications and sustainability, explained to Bloomberg in a written statement, it also targeted individuals who were not selling clothing items at elevated price points.

Frustrated customers took to Lululemon's Facebook page to complain. Many claimed to have turned to eBay due to the company's strict return policy, which states that unwanted merchandise must be returned within 14 days of purchase even if the item is a gift.

On Sunday, Lululemon backtracked from its aggressive tactics, issuing a statement of apology to CTV News. "We looked into it and realized that we had indeed gone too far, and have taken steps to fix it as quickly as possible. We are reaching out to apologize to the guests who were impacted."

Related: Lululemon Founder Resigns Amid Backlash Over 'Women's Body Type' Remarks

The uproar over blacklisted IPs is just the latest in a rash of bad publicity. Lululemon is currently seeking to dismiss an amended lawsuit accusing it of misleading and defrauding shareholders between September 7, 2012 and January 10, 2014, Reuters reported. Chargers include hiding defects in the recalled line of pants, and using deep discounting to boost market shares.

Last month, after Lululemon issued its second reduced earnings forecast, Chief Financial Officer John Currie told an industry conference that 2013 was a tough year. "You always hear the phrase that any PR is good PR. What we learned is that's not always the case," he said. "We're taking it seriously. Like, we get it."

Related: Still in the Doghouse: Lululemon Lowers Q4 Guidance

Laura Entis is a reporter for Fortune.com's Venture section.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

He Started a Business That Surpassed $100 Million in Under 3 Years: 'Consistent Revenue Right Out of the Gate'

Ryan Close, founder and CEO of Bartesian, had run a few small businesses on the side — but none of them excited him as much as the idea for a home cocktail machine.

Franchise

The Top 10 Coffee Franchises in 2024

From a classic cup of joe to a creamy latte, grab your favorite mug and get ready to brew up success with the best coffee franchises.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

'Jaw-Dropping Performance in 2024,' Says a Senior Analyst as Nvidia Reports Earnings

Nvidia reported its highly-anticipated third-quarter earnings on Wednesday.

Marketing

How Small Businesses Can Leverage Dark Social to Drive Word-of-Mouth Marketing

Dark social accounts for 70% of social media shares and is crucial for small businesses. Here's how you can tap into this hidden marketing opportunity.

Business News

'Do You Sell Cars?': Tesla CEO Elon Musk Trolls Jaguar Rebrand on X

The team running Jaguar's X account was working hard on social media this week.