Christine Day steps down as CEO of Lululemon
11/06/2013
The company recalled 17% of women’s pants in March after it emerged its luon fabric was too sheer – an announcement which initially caused its stock to dive, but from which the company has since recovered.
It announced a 21% increase in first quarter sales to $345.8 million and a 9% rise in profit to $170.7 million, including a provision of $17.5 million for inventories charged to cost of sales related to the pull-back of luon pants.
Ms Day, who has been with the company for five and a half years, commented: "I am proud of building a world class team that has produced one of the best growth, brand and profit stories in retail. The past quarter has been one of the most important in our company's history. While we regret that we had quality issues with our black luon we are proud of the organisation's ability to get luon delivered back into our stores within 90 days of having pulled it from our line, all the while keeping our guests [clients] happy and engaged with the brand."
Chief product officer Sherree Waterson left the company in April, a move which was widely attributed to the problems with the luon fabric. The company’s Taiwanese supplier said at the time the pants were made to the company’s specification, so a more rigorous testing programme was introduced.
The board is currently looking for a successor. Chip Wilson, chairman, said: "I thank Christine for her leadership, contributions and commitment to Lululemon. I am confident that we will find the right person to lead this strong team and continue to build on this excellent foundation."
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