CNBC Exclusive: CNBC Transcript: CNBC's Courtney Reagan Speaks with Christine Day, Outgoing CEO of Lululemon on "Closing Bell"
WHEN: TUESDAY, JANUARY 14TH
WHERE: CNBC'S "CLOSING BELL"
Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Outgoing Lululemon CEO Christine Day today on CNBC's "Closing Bell." All references must be sourced to CNBC.
REAGAN: GOOD AFTERNOON. I AM JOINED BY CHRISTINE DAY. OUTGOING CEO OF LULULEMON AND GOING TO START A NEW VENTURE. WHY PICK THIS COMPANY? YOU COULD HAVE GONE TO PROBABLY ANY NUMBER OF COMPANIES. WHY LUVO?
DAY: FOR ME IT'S ABOUT PURPOSE-LEAD COMPANIES, AND SOMETHING THAT I CAN TRANSFORMS INDUSTRIES IN. REINVENTING THE FROZEN FOOD AISLE WITH HEALTHY FOODS THAT'S NUTRIENT DENSE, THAT'S GOOD FOR PEOPLE, THAT REINTRODUCES PEOPLE TO FOOD THEY SHOULD BE EATING AND LOVE. THAT'S A MISSION I CAN GET UP FOR EVERY MORNING.
REAGAN: A LOT OF PEOPLE WERE SURPRISED WHEN YOU ANNOUNCED YOUR RETIREMENT FROM LULULEMON. YOU DID SO IN JUNE. WHEN DID YOU MAKE THE DECISION TO JOIN LUVO? PLAY US OUT THE TIME LINE.
DAY: I WAS APPROACHED BY THE FOUNDER STEVE IN SEPTEMBER. TOOK US A LITTLE WHILE TO KIND OF COORDINATE OUR SCHEDULES, SO IT WAS REALLY NOVEMBER WHEN WE KIND OF GOT INTO A SERIOUS CONVERSATION, AND AT FIRST IT WAS ABOUT A STRATEGIC ADVISER INVESTOR. I DECIDED TO MAKE AN INVESTMENT IN THE COMPANY AND THEN AS STEVE -- AND I STARTED TO LOOK AT THE BUSINESS MODEL. I SAID I WANT TO RUN THIS. AND THAT WAS STEVE'S DREAM ALL ALONG AND HE'S A SMOOTH TALKER, BUT I REALLY FEEL LIKE THE TIME IS RIGHT. THIS IS AN INDUSTRY THAT'S ABOUT TO MAKE A HUGE SHIFT, AND I THINK HEALTH AND WELLNESS ARE ON EVERYBODY'S MIND RIGHT NOW.
REAGAN: AND YOU DIDN'T EVEN HAVE TO LEAVE VANCOUVER.
DAY: I DON'T HAVE TO LEAVE VANCOUVER. IT COULDN'T GET ANY BETTER THAN THAT.
REAGAN: I THINK KELLY HAS A QUESTION FOR YOU.
EVANS: IT'S KELLY HERE AT THE STOCK EXCHANGE. THIS CATEGORY, AS YOU MENTIONED, IS ONE WHERE THERE'S ALREADY A TON OF COMPETITION AND THE EVOLUTION IS ALREADY HAPPENING. SO THE QUESTION WOULD BE, FIRST OF ALL, WHAT'S THE EDGE THAT YOU GUYS ARE BRINGING TO THE SPACE AND, SECONDLY, IS IT INTENTIONAL THAT THE NAME SOUNDS LIKE LULULEMON?
DAY: I HAD NOTHING TO DO WITH THAT. I DO APPRECIATE THE LUCKY "U" IN STARBUCKS, LULULEMON AND NOW IN LUVO. I AM HAPPY ABOUT THAT MAYBE. I THINK WHAT'S DIFFERENT ABOUT THE FOOD IS FIRST OFF IS THE TASTE. I THINK THE ONLY WAY FOR TO YOU EXPERIENCE THAT IS TO ACTUALLY TRY THE PRODUCT. BUT THIS IS INCREDIBLE TASTING FOOD AND THAT IS ONE OF THE THINGS THAT REALLY CONVINCED ME. THE SECOND IS IT'S NUTRIENT DENSE. I THINK THE WORDS, YOU KNOW, ANTIBIOTIC FREE AND HORMONE FREE AND THINGS ARE REALLY BIG IN THE REINVENTION BUT NOBODY TALKS ABOUT THE NUTRIENTS IN FOOD AND WHAT'S ACTUALLY NEEDED. WHETHER IT'S LOW SODIUM, LOW SUGAR, HIGH FIBER, AND NUTRIENT DENSE. THAT'S THE TYPE OF FOOD WE NEED TO BE EATING TO BECOME HEALTHY.
REAGAN: AND IF I COULD PICK IT UP HERE AND JUST TALK TO YOU A LITTLE BIT ABOUT LULULEMON AND THE COMPANY YOU'RE LEAVING BEHIND. WE TALKED ABOUT THE DISAPPOINTMENT THAT THE MARKET REALLY SHOWED WHEN YOU ANNOUNCED
YOUR RETIREMENT. WE HAVE A NEW CEO THAT'S GETTING READY TO START. HOW CONFIDENT DO YOU FEEL WITH THIS NEW TEAM AS YOU WALK AWAY FROM LULULEMON AND START YOUR NEXT CHAPTER?
DAY: I'LL TELL YOU, I DON'T THINK YOU HAVE A BETTER CFO THAN JOHN CURRY WHO IS THERE. TARA WHO JUST JOINED THE COMPANY AND IS HERE AT THE CONFERENCE IS AMAZING AND SHE'S GOING TO BRING A GREAT LEADERSHIP. AND, YOU KNOW, THIS IS A BRAND THAT HAS A LONG RUNWAY. I BELIEVE IN THIS TEAM. I BELIEVE IN THIS COMPANY AND I'M COMMITTED TO A SUCCESSFUL TRANSITION AND WE'RE GOING TO MEET UP NEXT WEEK AND HAVE A GREAT TIME SHARING EVERYTHING THAT'S GREAT ABOUT LULULEMON AND HE'S GOING TO CARRY IT FORWARD.
REAGAN: OKAY. KELLY WANTS TO JUMP IN AGAIN.
EVANS: I'M JUST CURIOUS WHEN YOU LOOK AT THE COMPANY NOW AND THE PERFORMANCE, THIS HAS GONE WELL BEYOND JUST KIND OF A SLIP UP HERE AND THERE. THE MARKET IS VALUING THIS COMPANY AT LEVELS MUCH BELOW WHAT WE SAW AT ITS PEAK. IT'S KIND OF BEEN A STORY ABOUT A RISE AND A FALL AND REFLECTING ON THAT, DO YOU WISH IT HAD TURNED OUT DIFFERENTLY OR IS THE STORY, I GUESS, NOT OVER YET?
DAY: I THINK EVERYBODY WOULD LOVE TO LEAVE ON A HIGH NOTE, AND IT'S PROBABLY, YOU KNOW, MY BIGGEST PERSONAL DISAPPOINTMENT IN WHAT'S HAPPENING RIGHT NOW, BUT THIS IS A COMPANY THAT HAS A LONG RUNWAY, A LOT OF BRAND LOYAL FANS. I SEE IT AS A MOMENTARY STUMBLE WITH GREAT OPPORTUNITY GOING FORWARD. THE PRODUCT IS STILL FANTASTIC. I THINK THIS NEW LEADERSHIP TEAM THAT'S BEEN ASSEMBLED HAS THE HEFT AND WEIGHT TO CARRY IT FORWARD. AND I WOULD BE VERY DISAPPOINTED IF ANYTHING ELSE HAPPENED.
EVANS: YES. THE HEALTH AND WELLNESS CATEGORY, WHETHER IT'S THINGS YOUR WEARING OR THINGS YOU'RE EATING, DOES SOUND LIKE IT'S STILL THE PLACE TO BE. CHRISTINE AND COURTNEY, THANK YOU SO MUCH FOR JOINING US THIS AFTERNOON. WE REALLY APPRECIATE IT.
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