Still, the news spooked investors. The retailer's shares fell 17.5% on Tuesday to $67.85. Sam Poser, equity analyst at Sterne Agee, downgraded lululemon to 'neutral' from 'buy' and cut his 12-month price target to $75 from $90.
The stock fell an additional 6% on Wednesday to $63.78.
While it would behoove lululemon to consider internal and external candidates, observers say lululemon's new chief executive is likely to come from left field. Day herself was a 20-year veteran at Starbucks (SBUX) before joining the company in January 2008.
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