Lululemon has posted signs in stores reading “CEO Wanted, Apply Within.” The job description on its website says, “You report to no one, you are the CEO (duh).”
The yoga apparel retailer hoped to lighten the mood. Since Monday’s announcement that CEO Christine Day plans to step down, its stock has fallen almost 20 percent.
Many investors are worried there will be a gap in leadership at the Vancouver-based company at a critical time. Lululemon is expanding outside of Canada and the U.S. – it has 23 stores in Australia and 2 in New Zealand – and is trying to fix quality control issues.
Day’s resignation was a key reason Sterne Agee financial analyst Sam Poser downgraded the stock to “neutral’ from “buy.” Still, despite the challenges, others point to growth opportunities in addition to overseas markets, such as men’s athletic wear.
Faye Landes, a financial analyst with Cowen and Co., said Day’s resignation is “a blow to the company, but definitely not a fatal one.”Associated Press