Lululemon CEO out after see-through pants debacle

  @jtotoole June 11, 2013: 11:54 AM ET
christine day lululemon

Lululemon said that in leaving the company, Day "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."

NEW YORK (CNNMoney)

It's been a difficult stretch for lululemon.

The yogawear producer announced Monday that CEO Christine Day is stepping down. The move follows a controversy earlier this year in which lululemon (LULU) was forced to pull certain yoga pants from its stores after the discovery that they turned see-through when the wearers bent over.

The problem forced the company to cut its revenue and profit forecasts and led to the departure of its top products executive.

In a Q&A on Day's departure posted online Monday, the company insisted the decision to leave was "entirely Christine's," and unrelated to the problem with the black luon, the fabric from which the transparent pants were made.

"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," lululemon said. Day has pledged to remain with the company through the end of the year or until a successor is named.

"Being a part of lululemon for the past five and a half years has been an incredible journey," Day said in a statement. "I am proud of building a world class team that has produced one of the best growth, brand and profit stories in retail."

Shares sank 13% in after-hours trading Monday. The selling continued into Tuesday, with shares sinking as much as 17%. The announcement came as lululemon announced its financial results for the three months ended on May 5, posting sales and earnings that came in just ahead of expectations. To top of page



Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 16,391.23 128.67 0.79%
Nasdaq 4,078.94 44.78 1.11%
S&P 500 1,858.16 15.18 0.82%
Treasuries 2.64 0.01 0.57%
Data as of 12:31pm ET
Company Price Change % Change
Bank of America Corp... 16.05 -0.34 -2.10%
Facebook Inc 59.24 0.15 0.25%
Yahoo! Inc 36.47 2.26 6.61%
Intel Corp 26.87 0.10 0.37%
Alcoa Inc 13.31 0.26 1.99%
Data as of 12:16pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.26%4.48%
15 yr fixed3.30%3.31%
5/1 ARM3.30%3.35%
30 yr refi4.25%4.45%
15 yr refi3.29%3.34%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.