I called my mother on the phone and told her the news. She screamed with excitement. Coincidentally, she was in a Lululemon store returning things at the same time.
I was always amazed she maintained her job after the Luon debacle. This was a long time coming. Unfortunately, CEO's who ruin companies can always find a safe place to land--other big companies hire them or they become lobbyists or enter politics.
To paraphrase a commenter from a few months ago: the watch for white smoke begins. I was initially excited but now I'm wondering.... The wording doesn't sound like she's being pushed out and isn't 5 years about the average length of time for a CEO (even an employee these days) to spend with a company unless the relationship is exceptionally successful? If she were being pushed out would she be helping with the search for a new CEO or going off to spend more time with family? I don't understand how net revenue actually climbed in Q1. I guess most customers don't have a problem with the declining quality. But we've hashed that subject to death on this blog already :o) And the decision to delist from the TSX and list solely on the Nasdaq. I half expect to hear that head office is moving next. The cost-cutting initiatives continue and I don't expect a return to the manufacturing quality "of yore". I am optimistic that the design quality could rebound to vintage lulu but I think they will continue with the current business model. Why change it when net revenue is rising? Hope I'm not being a Debbie Downer, I'm just not sure there's anything to be excited about unless the new CEO announces major changes when she/he takes over.
Wow that was quick! This company is in a total disarray. No product head, no CEO!!!
Lulu has gotten away with the substandard product for a while. This just seems to be the tip of the iceberg!!!!!
As more competition comes lulu looks more like a average company that cant get its act together rather than a premium product. There are so many good alternatives out there now - athleta/lucy are competing effectively with them and I am really looking forward to real premium companies like yogasmoga for new product.
LLA - you have been on the ball with this and calling for her resignation. Kudos to you!!! Now you need to expand your coverage to other amazing companies to tell us whats new - time to rebrand this blog-- calling it a lulu blog is so 2005!!!
After hours stock prices are really dropping with this announcement. We may all be happy she is leaving, but if you are a stockholder this isn't such great news.
I'm a relative lulu newbie having purchased my first pair of wunder unders about two years ago. From then I started building my wardrobe but slowly. Most of my first purchases were full price. I recently however have started purchasing a lot more items from WMTM and that has mostly been this quarter. I got tired of paying full price to then see the items marked down not long after. There isn't much that comes out that I have to have and can wait to score it on WMTM. I am selective in what I buy but the quality of everything I have purchased has been good even after multiple washes and wears.
How "timely" since she cashed in her stock options. Time will tell if she was really forced out. Great, successful CEO's usually are kept, not necessarily turned over after 5 years as some "rule". If the business is growing and profitable and the shareholders are happy, a CEO can stay because of the proven success.
If the new CEO goes on about a return to LLL core values and quality, then you'll know that Day was told to take a hike.
Wilson (of Day): "'...while growing the business and returning value to all of our stakeholders including our guests, employees, partners and shareholders.'"
Obviously "growing the business" is the proverbial bottom line. They will say, and she will say, that she is a success. However, so completely incorrect to reference "(all of our) guests" because she certainly did not "return value" to guests/customers, she DIMINISHED if not nearly REMOVED the true value of LLL as we knew it.
Lululemon is cute but way over priced , and yes I can afford the clothes . It is silly to fire a CEO over sheer pants. The company is profitable enough to absorb the cost of a redo on these pants without getting rid of the CEO. Who needs a company who is so anxious to dump its top dog? What about the all the supervisors and managers who signed off on these pants , are they gone too? Luckily many other company make yoga wear at a more affordable price.
The CEOs primary responsibility is to increase shareholder value. Since the stock closed at an all time high I would say she did a good job. Since the stock dropped over 10% on the news of her leaving investors are worried.
She wasn't fired by any means- get it right. The company wouldn't be what they are today if it wasn't for her building it up. Remember, she was Chip's choice- He backed her up and he envisioned her running the company, he owns majority of the shares in the company, so if he wanted her gone- he could have easily done it. Plus she has done a fabulous job expanding the company into what it is by balancing high quality and affordability and does it ethically. You people need to seriously crawl out of your holes and read some informative articles- because they praise her hard work and see what success she has brought to the company. Also, why don't you take a peak at what she's done for her employees. If you hate what lulu is, which is what Christine has practically made it, then why have a stupid "luluadict" blog and continue purchasing the clothing? Also, with your business woman background, you would think that you would be a little bit more supportive of women instead of being a troll online.
Day didn't make lululemon, Wilson built the company for 10 years before she came on board and put the company's reputation for high quality products into the dumpster. Day doesn't get a pass because she is a woman. I hate when women fall back on that bullshit.
Day didn't make lululemon you're right. However, no one outside the greater Vancouver area even knew what Lulu was 6 years ago. And if the quality is so shit then why do you continue to purchase the clothes and have a blog about it? Yeah the whole women supporting women thing is over played and may be bullshit BUT you do nothing but write a blog about the company that Christine Day ran and blog about all the various new product that her and her team is putting out. ALSO, a lot of the team that she was working with was the original team with chip INCLUDING the product manager who was essentially in charge of the quality of product. She did what she needed to do in order to take the company in the direction that the board of directors and the investors wanted it to go, including Chip.
"If you hate what lulu is, which is what Christine has practically made it, then why have a stupid "luluadict" blog and continue purchasing the clothing?"
First, that's dead wrong to say she made lulu what it is. SO wrong. I used to work for lululemon, and you could not be more wrong.
Second, if you think this blog is stupid, stop reading it, because we all love it, and you're a little outnumbered here, sweetheart.
Have a good night sweets and no more grumpy, please.
Day allowed the quality of LLL products to decline. In many cases the prices have gone up and cheaper materials have been used. Just because she is a woman does not mean that we need to support her. Her interest in the company is bottom line, make it sheer bottom line.
@ anon 8:44 pm - that is not true that no one knew about lululemon before she came on board in 2008. There are quite a few long time US fans of the brand and lululemon was hugely known throughout all of Canada.
So your point is that gutting the quality and over expanding to pump the stock price makes you a good CEO? It's not a very good long term strategy when your quality nosedives and you lose customers to your competition. Over expansion is a double edged sword. Most of the early adopters/fashionista types who liked lululemon because no one else was wearing it shy away from walking into a class where three other people have on the same top and are actively searching out alternatives. The sale racks are pretty large in the stores these days. Don't tell me sales are as hot as they were two years ago.
No, not Christine. Just a lulu fan and a yogi that reads articles and doesn't get why you guys buy the clothes, but dislikes how the company's ran. It sounds like you just hate that they expanded and went public. Because the business world and the yoga world seems to have embraced lulu.
@ anon 9:52pm - Has the yoga world really embraced lululemon? Because I read a heckofa lot of snark against the brand on Yogadork.
We dislike how the company has been run over the past couple of years because the clothes used to be great quality across the board and now it isn't. The pants used to be opaque and aren't. Colors didn't used to run and now they do. Seams used to stay sewn and now routinely unravel.
You obviously haven't been buying the brand very long.
One of the biggest reasons us long timers keep buying the brand is that resale value of used lululemon is super high, especially compared to other 'yoga' brands. I can sell a tank I paid $58+ for a year ago and sell it for $89 (true). I can nearly always get ~70% back on my Cool Racerbacks.
Actually Anon@ 9:52 a lot of us stopped buying LLL due to the rampant quality issues and chronically poor customer service stemming from Day's mismanagement. My last purchase was a gorgeous flash SS floral swiftly that keeps bleeding after more washes than I can count! I'm literally afraid to sweat in it! I think this item was from last summer - I haven't bought much since then (I used to average about $500/monthly on LLL). Since then I've gone back to buying from Athleta. So stop with your snarkiness because LLL has lost countless customers over the past couple years.
Sorry LLA but I no longer visit here regularly because I don't buy LLL anymore. I stopped by to read everyone's reactions to the news. My fingers are crossed that we see our beloved old LLL return. In the meantime LLA, I am interested in reading your reviews on other brands - your yogasmoga reviews were helpful!
No one outside of the greater Vancouver area knew of lululemon in 2007? Not true. I've been buying since 2003 and watched the expansion from 2003-2008 of 1-3 stores in my Alberta city. The brand has always been recognizable in my gym since I became a shopper in 2003. I'm fairly certain this was the case across Canada wherever lululemon b&m stores were found.
I don't think that lulu is going to change much just because the CEO is stepping down. I also think that lll is doing just fine, tons of people are still buying and wearing lululemon. I am seeing more and more of the brand out in the streets and gyms and also when I sail.
Yes it's good news, but I'll wait until I see her replacement before I start to cheer, it could just be a case of out of the frying pan and into the fire.
LOL no one knew LLL outside of Vancouver in 2007. Hello, Toronto here. Of course we were into it back then!
As for the Day supporters, friends and so forth...uh, she may be a successful CEO with growth, profit achievements to her name, we get it! However, she HAS damaged the brand! You CANNOT state that she maintained the superior quality. She didn't, she sacrificed it to achieve growth and profit! The quality has deteriorated and the "design" is bad. Yes, we compare the LLL of yesteryear to today and it is pretty apparent that today's quality is substandard--same high prices or even increased prices!
I'm very satisfied to hear that she is stepping down. In addition to the reduction in quality that we all know (the pilling in particular bugged me) and the pedestrianisation of the designs, I felt quite hurt and well, offended, by her barefaced manipulation of consumer psychology, as demonstrated by her comments about her willingness to "frustrate the customer through the application of the 'scarcity model'. Draconian return policies and customer service that was much less gracious than they could afford didn't help either. Let's hope for a return to the brand standards in the future.
45 comments:
"Ding Dong, the Witch is DEAD" lalalalalalala!!!
Hallelujah!!! :)
It's about time!!!!
I second @ Anon 1:16 PM.
It's a about freaking time!!!
I called my mother on the phone and told her the news. She screamed with excitement. Coincidentally, she was in a Lululemon store returning things at the same time.
Let's hope the next one isn't quite as bad.
@1:16 -- haha, that is hilarious!!
And that is exciting news!! Hopefully better/improved design and quality in the future!!
LLL is already ruined. Investors are spoiled, and to increase product quality without increasing prices? I don't think that's what's gonna happen.
Being *pushed* down is more like it, I'd wager! Here's hoping she takes the quality issues and poor design choices with her!
BYE!!! Day! Don't let the door hit you on your sheer a$$ on the way OUT!
ahhhh happy days! good, now bring back the classic styles
Oh my god, best news I've heard all day!
THANK THE UNIVERSE!! she is condescending, snotty, and clearly had no passion for the product. she will not be missed.
Best news I've heard all day! NO - make that all year!!!!
Cue the hallelujah chorus!!!
I was always amazed she maintained her job after the Luon debacle. This was a long time coming. Unfortunately, CEO's who ruin companies can always find a safe place to land--other big companies hire them or they become lobbyists or enter politics.
To paraphrase a commenter from a few months ago: the watch for white smoke begins. I was initially excited but now I'm wondering.... The wording doesn't sound like she's being pushed out and isn't 5 years about the average length of time for a CEO (even an employee these days) to spend with a company unless the relationship is exceptionally successful? If she were being pushed out would she be helping with the search for a new CEO or going off to spend more time with family? I don't understand how net revenue actually climbed in Q1. I guess most customers don't have a problem with the declining quality. But we've hashed that subject to death on this blog already :o) And the decision to delist from the TSX and list solely on the Nasdaq. I half expect to hear that head office is moving next. The cost-cutting initiatives continue and I don't expect a return to the manufacturing quality "of yore". I am optimistic that the design quality could rebound to vintage lulu but I think they will continue with the current business model. Why change it when net revenue is rising? Hope I'm not being a Debbie Downer, I'm just not sure there's anything to be excited about unless the new CEO announces major changes when she/he takes over.
Bye bye baby!!!! Note to new administration.....go back to what made us into lulu addicts.. Quality product.
@ anon 2:02 PM- So true & so funny!
What a good DAY this is!!!!
Wow that was quick! This company is in a total disarray. No product head, no CEO!!!
Lulu has gotten away with the substandard product for a while. This just seems to be the tip of the iceberg!!!!!
As more competition comes lulu looks more like a average company that cant get its act together rather than a premium product. There are so many good alternatives out there now - athleta/lucy are competing effectively with them and I am really looking forward to real premium companies like yogasmoga for new product.
LLA - you have been on the ball with this and calling for her resignation. Kudos to you!!! Now you need to expand your coverage to other amazing companies to tell us whats new - time to rebrand this blog-- calling it a lulu blog is so 2005!!!
you guys are tough. yikes
M
After hours stock prices are really dropping with this announcement. We may all be happy she is leaving, but if you are a stockholder this isn't such great news.
I'm a relative lulu newbie having purchased my first pair of wunder unders about two years ago. From then I started building my wardrobe but slowly. Most of my first purchases were full price. I recently however have started purchasing a lot more items from WMTM and that has mostly been this quarter. I got tired of paying full price to then see the items marked down not long after. There isn't much that comes out that I have to have and can wait to score it on WMTM. I am selective in what I buy but the quality of everything I have purchased has been good even after multiple washes and wears.
How "timely" since she cashed in her stock options. Time will tell if she was really forced out. Great, successful CEO's usually are kept, not necessarily turned over after 5 years as some "rule". If the business is growing and profitable and the shareholders are happy, a CEO can stay because of the proven success.
If the new CEO goes on about a return to LLL core values and quality, then you'll know that Day was told to take a hike.
Wilson (of Day): "'...while growing the business and returning value to all of our stakeholders including our guests, employees, partners and shareholders.'"
Obviously "growing the business" is the proverbial bottom line. They will say, and she will say, that she is a success. However, so completely incorrect to reference "(all of our) guests" because she certainly did not "return value" to guests/customers, she DIMINISHED if not nearly REMOVED the true value of LLL as we knew it.
http://ca.finance.yahoo.com/news/lululemons-biggest-fanatics-wanted-ceo-212550020.html
Lululemon is cute but way over priced , and yes I can afford the clothes . It is silly to fire a CEO over sheer pants. The company is profitable enough to absorb the cost of a redo on these pants without getting rid of the CEO. Who needs a company who is so anxious to dump its top dog? What about the all the supervisors and managers who signed off on these pants , are they gone too? Luckily many other company make yoga wear at a more affordable price.
The CEOs primary responsibility is to increase shareholder value. Since the stock closed at an all time high I would say she did a good job. Since the stock dropped over 10% on the news of her leaving investors are worried.
She wasn't fired by any means- get it right. The company wouldn't be what they are today if it wasn't for her building it up. Remember, she was Chip's choice- He backed her up and he envisioned her running the company, he owns majority of the shares in the company, so if he wanted her gone- he could have easily done it. Plus she has done a fabulous job expanding the company into what it is by balancing high quality and affordability and does it ethically. You people need to seriously crawl out of your holes and read some informative articles- because they praise her hard work and see what success she has brought to the company. Also, why don't you take a peak at what she's done for her employees. If you hate what lulu is, which is what Christine has practically made it, then why have a stupid "luluadict" blog and continue purchasing the clothing? Also, with your business woman background, you would think that you would be a little bit more supportive of women instead of being a troll online.
praise the lord! our prayers have been answered
Day didn't make lululemon, Wilson built the company for 10 years before she came on board and put the company's reputation for high quality products into the dumpster. Day doesn't get a pass because she is a woman. I hate when women fall back on that bullshit.
Day didn't make lululemon you're right. However, no one outside the greater Vancouver area even knew what Lulu was 6 years ago. And if the quality is so shit then why do you continue to purchase the clothes and have a blog about it? Yeah the whole women supporting women thing is over played and may be bullshit BUT you do nothing but write a blog about the company that Christine Day ran and blog about all the various new product that her and her team is putting out. ALSO, a lot of the team that she was working with was the original team with chip INCLUDING the product manager who was essentially in charge of the quality of product. She did what she needed to do in order to take the company in the direction that the board of directors and the investors wanted it to go, including Chip.
To Anonymous 8:19:
Christine, is that you?
"If you hate what lulu is, which is what Christine has practically made it, then why have a stupid "luluadict" blog and continue purchasing the clothing?"
First, that's dead wrong to say she made lulu what it is. SO wrong. I used to work for lululemon, and you could not be more wrong.
Second, if you think this blog is stupid, stop reading it, because we all love it, and you're a little outnumbered here, sweetheart.
Have a good night sweets and no more grumpy, please.
Day allowed the quality of LLL products to decline. In many cases the prices have gone up and cheaper materials have been used.
Just because she is a woman does not mean that we need to support her. Her interest in the company is bottom line, make it sheer bottom line.
Is this you, Ms. Day?
@ anon 8:44 pm - that is not true that no one knew about lululemon before she came on board in 2008. There are quite a few long time US fans of the brand and lululemon was hugely known throughout all of Canada.
So your point is that gutting the quality and over expanding to pump the stock price makes you a good CEO? It's not a very good long term strategy when your quality nosedives and you lose customers to your competition. Over expansion is a double edged sword. Most of the early adopters/fashionista types who liked lululemon because no one else was wearing it shy away from walking into a class where three other people have on the same top and are actively searching out alternatives. The sale racks are pretty large in the stores these days. Don't tell me sales are as hot as they were two years ago.
No, not Christine. Just a lulu fan and a yogi that reads articles and doesn't get why you guys buy the clothes, but dislikes how the company's ran. It sounds like you just hate that they expanded and went public. Because the business world and the yoga world seems to have embraced lulu.
@ anon 9:52pm - Has the yoga world really embraced lululemon? Because I read a heckofa lot of snark against the brand on Yogadork.
We dislike how the company has been run over the past couple of years because the clothes used to be great quality across the board and now it isn't. The pants used to be opaque and aren't. Colors didn't used to run and now they do. Seams used to stay sewn and now routinely unravel.
You obviously haven't been buying the brand very long.
One of the biggest reasons us long timers keep buying the brand is that resale value of used lululemon is super high, especially compared to other 'yoga' brands. I can sell a tank I paid $58+ for a year ago and sell it for $89 (true). I can nearly always get ~70% back on my Cool Racerbacks.
Actually Anon@ 9:52 a lot of us stopped buying LLL due to the rampant quality issues and chronically poor customer service stemming from Day's mismanagement. My last purchase was a gorgeous flash SS floral swiftly that keeps bleeding after more washes than I can count! I'm literally afraid to sweat in it! I think this item was from last summer - I haven't bought much since then (I used to average about $500/monthly on LLL). Since then I've gone back to buying from Athleta. So stop with your snarkiness because LLL has lost countless customers over the past couple years.
Sorry LLA but I no longer visit here regularly because I don't buy LLL anymore. I stopped by to read everyone's reactions to the news. My fingers are crossed that we see our beloved old LLL return. In the meantime LLA, I am interested in reading your reviews on other brands - your yogasmoga reviews were helpful!
No one outside of the greater Vancouver area knew of lululemon in 2007? Not true. I've been buying since 2003 and watched the expansion from 2003-2008 of 1-3 stores in my Alberta city. The brand has always been recognizable in my gym since I became a shopper in 2003. I'm fairly certain this was the case across Canada wherever lululemon b&m stores were found.
I don't think that lulu is going to change much just because the CEO is stepping down. I also think that lll is doing just fine, tons of people are still buying and wearing lululemon. I am seeing more and more of the brand out in the streets and gyms and also when I sail.
M
Yes it's good news, but I'll wait until I see her replacement before I start to cheer, it could just be a case of out of the frying pan and into the fire.
LOL no one knew LLL outside of Vancouver in 2007. Hello, Toronto here. Of course we were into it back then!
As for the Day supporters, friends and so forth...uh, she may be a successful CEO with growth, profit achievements to her name, we get it! However, she HAS damaged the brand! You CANNOT state that she maintained the superior quality. She didn't, she sacrificed it to achieve growth and profit! The quality has deteriorated and the "design" is bad. Yes, we compare the LLL of yesteryear to today and it is pretty apparent that today's quality is substandard--same high prices or even increased prices!
I'm very satisfied to hear that she is stepping down. In addition to the reduction in quality that we all know (the pilling in particular bugged me) and the pedestrianisation of the designs, I felt quite hurt and well, offended, by her barefaced manipulation of consumer psychology, as demonstrated by her comments about her willingness to "frustrate the customer through the application of the 'scarcity model'. Draconian return policies and customer service that was much less gracious than they could afford didn't help either. Let's hope for a return to the brand standards in the future.
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