Shares of yoga gear (we're a dude, so we call sporting stuff, including clothes, "gear") rocket-stock Lululemon seriously swooned today on news that its CEO Christine Day was going to resign. Day presided over a 400% increase in the company's share price, even if it had suffered a bit this spring following a notorious recall of yoga pants that were a bit too translucent for the women who would pay for them. As the linked article says, if the board "pushed" Day on account of the recall it seems short-sighted, even for easily-panicked directors.
More likely, the women who spend top dollar for Lululemon's clothes fired up the social-networking to take down Day.
Some of the yoga gear maker's biggest fans called for the CEO's firing after the retailer announced the recall. Carolyn Beauchesne, author of the blog Lululemon Addict, claimed in a post that Day "ruined" her favorite brand.Uh, how else do you grow a company?
Beauchesne's blog is a gathering place for women who want to review and discuss Lululemon yoga gear. She once told us that she's spent a total of $15,000 shopping there.
Responding to the see-through pants scandal, Beauchesne explained why many fans of the retailer don't like the CEO: "Day has ruined everything special about lululemon. The bullet proof quality, the fit, the femininity, the lululemoness of the product," Beauchesne wrote in March. "She is a one-trick pony who grew the company through expansion."
But here's the cheap shot:
"I had more faith in Chip Wilson to appoint someone with a like-minded vision for the company," one commenter wrote. "I'm surprised that he fell for her-she provided short-term eye candy for the investors, but look where it has taken her in the long run."Yeah, that "eye candy" (judge for yourself, seems like a normal professional woman to me) only grew the stock 400% during a time when the broader market was more or less net flat. And, anyway, I never met a portfolio manager who bought or sold a stock based on the looks of the CEO.