Lululemon lowers forecasts, shares plunge

September 12, 2013: 10:05 AM ET
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NEW YORK (CNNMoney)

Shares of Lululemon Athletica plunged early Thursday, as the company issued a disappointing outlook for the rest of the year.

Sales and profits will still show growth, the company said, but its forecasts were short of estimates.

Shares of Lululemon (LULU) were down about 6% in early trading.

The company took a hit earlier in March when it was forced to recall its most popular yoga pants, because they became see-through when customers would bend over.

CFO John Currie told investors that dealing with the recall had caused a "hangover" that resulted in the company being slower to get the summer product line out of stores and the fall product on shelves.

Related: Lululemon: In an uncomfortable position

In the wake of the recall, the company's top product executive left the company, and in June, the company announced that CEO Christine Day would also be leaving the company when a replacement was found. No announcement has yet been made on her successor.

Day said that the company's search committee has started to interview candidates and that it expects to narrow the search down to a list of finalists in the coming months. She said the new CEO's start date would depend on the schedule of the candidate who is picked.

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