Athletic-gear maker Lululemon announced Monday that CEO Christine Day will step down. The news came a few months after the company had to recall one of its yoga pants for being too sheer.
Lululemon said Day, who has been at the helm for more than five years, will stay on as CEO until a successor is named. The board has already formed a search committee, the company said in a statement.
Last week, the company announced that it was starting to get some of its Luon yoga pants back on stock shelves after they were recalled in March.
The company has carved out a lucrative niche with its high-end, fashionable yogawear, although it had warned that the recall of the pants could cost up to $40 million profit this year, with most of the impact coming in the second quarter.
The stock fell more than 14 percent in extended-hours trading. (Click here to get the latest quote.)
The Canadian company also reported quarterly earnings and revenue that beat analysts' expectations.
Net income climbed 1.4 percent to $47.3 million, or 32 cents a share, in the first quarter, from $46.6 million, or 32 cents a share in the year-earlier period.
Comparable-store sales, a key benchmark for the retail sector, increased by 7 percent on a constant dollar basis.
Revenue rose 21 percent to $345.8 million from $286 million in the same period a year ago.
Analysts had expected the company to report earnings excluding items of 30 cents a share on $341 million in revenue, according to a consensus estimate from Thomson Reuters.
For the second quarter, Lululemon expects earnings to come in between 33 and 35 cents a share on revenue of $340 million to $345 million. Analysts currently expect earnings of 33 cents a share on revenue of $329 million for the quarter.
The company also said it expects same-store sales to climb 5 percent to 7 percent in the second quarter.
Lululemon will hold its shareholders meeting on Tuesday afternoon in Chicago.