Lululemon Athletica Inc. (TSX:LLL) says it will begin looking for a new leader to head the yoga clothing maker after chief executive officer Christine Day announced Monday that she is leaving the company.
Day, who offered little explanation for her departure, said she will remain with the company while the board searches for a new CEO.
"Plans have been laid for the next five years and a vision set for the next 10," she said in a statement.
"Now is the right time to bring in a CEO who will drive the next phase of Lululemon's development and growth."
The CEO transition plan comes as the retailer, which reports in U.S. dollars, posted a first-quarter profit of $47.3 million or 32 cents per share.
The results met analyst expectations, according to a poll of analysts by Thomson Reuters but marked only a slight increase in profits from a year ago, when it earned $47 million or 32 cents per share.
Revenue strengthened 21 per cent to $345.8 million from $285.7 million.
Yoga pants recalled
Day's departure follows problems earlier this year that saw the company pull its black Luon yoga pants from store shelves for being too sheer.
The move forced the company to cut its financial guidance for the year.
The company blamed the sheerness on a style change and production problems and hired a new team to oversee the making of the pants.
Following the debacle, Sheree Waterson, the company's chief product officer, left the company. Specific reasons for Waterson's departure were not disclosed.
Soon after the recall was announced, a U.S. pension fund invested in the company launched a lawsuit against Lululemon over its decision to increase potential bonuses for executives prior to announcing the problems with the pants.
Will delist from TSX
The company also said Monday it will delist from the Toronto Stock Exchange later this month because of "minimal trading volume of its shares."
Lululemon, which was founded in Vancouver and opened its first store there in 2000, is also listed on the Nasdaq market.
Lululemon aims to remove its shares from the TSX on June 24, saying that the low trading volume "no longer justifies the expenses and administrative efforts associated with maintaining" a dual listing on both the Canadian stock exchange as well as the Nasdaq.
Shares of the company were down nine per cent to $74.68 in after hours trading at 4:30 p.m.