In a press release on Monday, Lululemon athletica inc. announced that CEO Christine Day would be stepping down after five years at the helm. She'll remain until Lululemon's board finds a suitable replacement.
"Now is the right time to bring in a CEO who will drive the next phase of Lululemon's development and growth," Day said in the release. Lululemon's chairman of the board Chip Wilson thanked Day for her contributions, adding he is "confident that we will find the right person to lead this strong team and continue to build on this excellent foundation."
Until recently, Lululemon had gathered somewhat of a cult following for its yoga gear. But back in April, the company was embroiled in controversy after it was revealed that some of its pants were, well, a bit too revealing. Seventeen percent of the black Luon pants had to be recalled, and the snafu led to the resignation of the company's chief product officer, Sheree Waterson. The Luon came back on shelves this month, and revenue is up a healthy 21% year over year, but heads continue to roll.
In the press release, Day acknowledged the quality issues, but said the last quarter "has been one of the most important in our company's history." Immediately after the announcement, Lululemon shares plummeted.