Did See-Through Yoga Pants Bring Down the Lululemon CEO?
Christina Day, chief executive office for Lululemon Athletica (NASDAQ:LULU) is taking her chaturanga elsewhere. The popular yogawear retailer announced Monday that its CEO has decided to step down, following a difficult quarter for the company.
Lululemon, seller of athletic apparel and yoga gear, has been a hugely successfully retailer that, according to Day, “has produced one of the best growth, brand, and profit stories in retail.” However, its success was marred this year when the company was forced to pull its black Luon pants from the shelves after customers complained about transparency issues. Lululemon announced last week that the problem has since been fixed with stores restocked.
But, despite recovered sales and earnings that came in ahead of expectations, Day believes it is her time to go.
The company insists it was her personal decision, explaining, “The company has recovered from the setback around the black Luon, and Christine is acting on her deep conviction that it is time to transition to a new CEO to lead the company through its next phase of growth.”
Day’s departure follows in the wake of the dismissal of the company’s chief product officer, Sheree Waterson, who left Lululemon just weeks after the Vancouver-based retailer was forced to recall 17 percent of its pants. The uncertainty of Lululemon’s leadership is worrying investors, as evidenced by shares sinking 13 percent in after-hours trading Monday.
Day came to Lululemon in January 2008 after working with Starbucks Corp (NASDAQ:SBUX) for 20 years. She said she will remain CEO until a successor is named.
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