Lululemon Athletica Inc. (LULU) Shares Sink As CEO Set To Leave

Shares of Lululemon Athletica inc. (NASDAQ:LULU) plummeted by 14 percent to $70.68 per share in after hour trading after the company announced the resignation of CEO Christine Day after serving the company for five and a half years.

Lululemon Athletica Inc. (LULU) Shares Sink As CEO Set To Leave

According to Lululemon Athletica inc. (NASDAQ:LULU), Day will vacate her position after the company finds an executive to take over her responsibilities. The board of directors of the company has already created a search committee and implemented a succession plan.

In a statement Day said, “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 development and growth. I will continue to actively lead the organization while the board searches for a new CEO, and will work to ensure a smooth transition.”

On the other hand, Chip Wilson, chairman of the board of directors of Lululemon Athletica inc. (NASDAQ:LULU), stated that Day lead the company exceptionally and successfully embraced its culture while growing its business and returning value to all shareholders, partners, and employees.

“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,” said Wilson.

Lululemon’s Financial Performance:

In addition, Lululemon Athletica inc. (NASDAQ:LULU) also announced its financial performance for the first quarter ending May 5, 2013. The company posted a net income of $47.3 million or $0.32 earnings per share, and net revenue of $345.8 million.

The company exceeded analyst expectations of $0.30 earnings per share on $341.4 million revenue based on data compiled by FactSet.

Lululemon’s Revenue:

Lululemon Athletica inc. (NASDAQ:LULU) reported that its current revenue is 21 percent higher compared with its $285.7 million revenue in the same period a year ago. Its comparable store sales for the period rose by 7 percent.

According to the company, it’s gross profit for the first quarter increased by 9 percent to $170.7 million, and its tax rate was 29.8 percent compared with 36.5 percent last year.

Lululemon Athletica inc. (NASDAQ:LULU) expects to deliver around $0.33 to $0.35 earnings per share on a revenue of approximately $340 million to $345 million for the second quarter.

For the full fiscal 2013, the company expects to achieve about $1.96 to $2.01 earnings per share on $1.65 billion to $1.67 billion revenue.

In April, Lone Pine Capital increased its stake in Lululemon Athletica inc. (NASDAQ:LULU) to 5 percent after the stock price of the company declined due to a yoga pants fiasco.