Lululemon CEO Steps Down
And the sheer mess continues. Lululemon’s CEO, Christine Day, is stepping down from her post following a five-and-a-half year run at the brand. Lululemon made the announcement (calling it a ‘CEO Transition Plan’) when releasing its quarterly earnings report on Monday. Day will not leave the brand until a successor is found. “Being a part of Lululemon for the past five and a half years has been an incredible journey,” Day said in a company-issued statement. “I am proud of building a world class team that has produced one of the best growth, brand and profit stories in retail. Now is the right time to bring in a CEO who will drive the next phase of Lululemon’s development and growth.”
Day was responsible for overseeing Lululemon’s mass expansion outside of the brand’s native Canada. Founded in 1998, (with its first retail location opening in 2000), Lululemon now boasts 218 locations between the U.S. and Australia.
Perhaps less nobly, Day also helmed Lululemon as it experienced a PR disaster this past March. It was then that upon discovering a production run of its 'Luon' yoga pants was too sheer, that the brand recalled 17-percent of all its women’s bottoms. The blunder cost the company a reported $12 to $17 million in profit losses.
When reached for comment, a representative for Lululemon insisted that Day’s departure was not caused by the ‘Luon’ scandal. “No, this was Christine’s decision,” the spokesperson told The Daily Beast.
Monday's earnings report outlined the company's positive earnings, despite the 'Luon' lost profits, reporting a 21-percent increase in net profits, and a 1.4-percent increase in net income. [WWD]