Shares in trend-setting yoga wear specialist Lululemon recovered after taking a battering in early trading amid damaging claims over its VitaSea clothing line.

Reports in the New York Times claimed that tests on VitaSea, which the Canadian company says is made with seaweed, showed no signs of any seaweed content - and suggested no noticeable difference to conventional cotton-based materials.

The lab tests were conducted after a sceptical investor - who had earlier sold all her Lululemon stock at a profit - contacted the newspaper.

In early trading, shares in Lululemon, which launched an IPO earlier this year, fell sharply. However, they later recovered and finished up on the day.

Lululemon did not respond to just-style's requests for comment. However, local reports suggested that CEO Robert Meers was standing by the claims made about VitaSea.

The company had contracted all laboratory testing out to Switzerland-based SGS, the reports said, and VitaSea had met all relevant specifications during the last batch of tests in July. There are currently no plans to stop selling VitaSea, although the company would honour customer requests for returns as normal, according to reports.