Lululemon CEO Christine Day is leaving the firm after five and a half years leading the yoga-themed retailer.
The fast growing Vancouver-based company announced the news Monday, calling it ‘a personal decision,’ on the part of Day. Lululemon is now starting a CEO transition plan, with Day remaining at the helm of the company until an interim CEO can be appointed.
In a statement, Day said it is the right time for the transition. “Plans have been laid for the next five years and a vision set for the next ten. Now is the right time to bring in a CEO who will drive the next phase of lululemon’s growth.
Investors disagreed with the decision, pushing shares down 12%, or off $10.27 from the close Monday. The retailer struggled recently with quality issues around a $100 pair of yoga pants that were too sheer. Chief Product Officer Sheree Waterson left the company in April, following the problems.
The problem also affected earnings, with gross margins down 5.6 percentage points to 49.4% in the first quarter of fiscal 2012. Net revenue was up 21% to $345.8 million.