Editor’s Note: Related tickers: Lululemon Athletica inc. (NASDAQ:LULU)
Lululemon Athletica inc. (NASDAQ:LULU) shares are expected to drop sharply when North American markets open this morning, following news that the clothing company’s high-profile chief executive has decided to leave. Lululemon Athletica inc. (NASDAQ:LULU) shares were down 13.5 per cent in pre-market trading on the Nasdaq stock market ahead of the open. They closed at US$82.28 on Monday before the announcement. On the Toronto Stock Exchange, they closed at C$84.03. The shares has been trading near multi-year highs recently. The Vancouver-based fashion company shocked the investment community after markets closed on Monday by announcing CEO Christine Day has decided to leave the company.
Investors bolt as Lululemon troubles mount (MontrealGazette)
When Lululemon Athletica inc. (NASDAQ:LULU) announced Monday that chief executive officer Christine Day was leaving the company, investors bolted. Day, 51, had been a Wall Street darling. Sales have tripled in the past three years and the shares had risen more than fivefold since June 27, 2008, the day before she became CEO of the Canadian yogawear juggernaut. And while her reputation took a hit earlier this year when the Vancouver-based company was forced to recall pants that became transparent when wearers bent over, her announced departure caught many analysts by surprise.
‘Got Sweaty Balls?’ sign at Lululemon provokes questions (BerkeleySide)
The Lululemon Athletica inc. (NASDAQ:LULU) store on the corner of Ashby and College avenues has installed a window display that is prompting a lot of discussion. A sign reading “Got sweaty balls?” covers a large section of the main window. It sits in front of five mannequins wearing colorful male underwear. A smaller sign reads “Best. Boxer Briefs. Ever.” “It’s certainly unusual,” said Joshua, a store manager who didn’t give his last name. “It’s not going to be up for very long.” The display was not designed by the Vancouver corporate headquarters, said Joshua, but was a choice made independently by employees at the Elmwood store.
What’s in Store for Lululemon? (DailyFinance)
Back in March, things fell apart for Lululemon Athletica inc. (NASDAQ:LULU). The company had to pull product off the shelf, after it determined that the fabric in many of its pants was too sheer. That news hammered the stock, sending it down 8% in the week after the announcement. Lululemon jumped to make good on the bad news, and now it seems to have turned itself around. With first-quarter earnings coming out next week, what should investors be on the lookout for? Since the 8% drop, Lululemon Athletica inc. (NASDAQ:LULU) has rebounded like a Super Ball, up 30%. The company took relatively quick action, pulling the affected products, addressing customer issues, and removing the company’s chief product officer in early April.
Lululemon’s Finally Covering Its Customers (Fool)
Lululemon Athletica inc. (NASDAQ:LULU) has been the butt of many jokes since March. That’s when the company announced that it was recalling its black Luon yoga pants because they were “too sheer.” That’s clothing-speak for “see-through.” In this video, Motley Fool contributor Brian Stoffel talks about how the company dealt with the problem, and why management and customers can now move on from this embarrassing episode. Lululemon Athletica inc. (NASDAQ:LULU) has the potential to grow its sales by 10 times if it can penetrate its other markets like it has in Canada, but the competitive landscape is starting to increase.
