Lululemon CEO Christine Day is stepping down.
Shares are tanking on the news.
Day has been the head of luxury yoga-wear maker Lululemon since 2008. Before that, she worked as an executive at Starbucks.
The board has hired an executive search committee, and Day will stay on as CEO until her replacement is chosen, the company said today.
“Being a part of Lululemon for the past five and a half years has been an incredible journey. I am proud of building a world class team that has produced one of the best growth, brand and profit stories in retail,” Day said in a company release.
“Plans have been laid for the next five years and a vision set for the next 10. Now is the right time to bring in a CEO who will drive the next phase of Lululemon’s development and growth. I will continue to actively lead the organisation while the Board searches for a new CEO, and will work to ensure a smooth transition,” Day said.
Day’s leadership was called into question after a series of quality control issues with the brand’s clothing.
The worst offence happened in March, after the retailer had to recall 17% of its black luon yoga pants for being too sheer.
The retailer figured out the source of the problem and has started re-stocking shelves.
The company didn’t say where Day plans to go next.
Lululemon beat Wall Street’s expectations during earnings today.
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