Transition and Turmoil at Lululemon

Christine Day, Lululemon | BCBusiness
Lululemon CEO Christine Day announced her surprise departure from Lululemon on June 10, 2013.

Lululemon CEO Christine Day announces her departure from the company and stock price plunges

Yoga-apparel retailer Lululemon Athletica announced June 10 that CEO Christine Day will be stepping down from her role, which she has held for over five years. Day has yet to state the reason for her sudden departure or reveal her next move.

The announcement comes just three months after the black-luon incident, where pants were pulled from stores for being too sheer. Despite the setback, the company prides itself on having the product altered and delivered back to stores within 90 days of being recalled.

Lululemon also released its first-quarter results, showing that net revenue has increased by 21 per cent to $345.8 million from $285.7 million. In-store sales also rose by seven per cent. Looking ahead to the second quarter, the company expects net revenue to be in between the $340 to $345 million range. This morning, however, shares of the Vancouver-based company dropped by almost 17 per cent, following the announcement of Day’s departure.

Day will continue to lead the company while an appropriate replacement is found. No mention has been made of who the company will target to be the next CEO and whether or not they will look to hire internally. In a press release from the company, Day said that her early announcement will allow more time for a smooth transition.