CORRECTED-UPDATE 1-Lululemon names new CEO; founder Chip Wilson to step down

Tue Dec 10, 2013 8:14am EST
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(Corrects name to "Laurent" from "Lauren" in paragraph 1)

By Ashutosh Pandey

Dec 10 (Reuters) - Yoga-wear retailer Lululemon Athletica Inc, reeling from an embarrassing recall of see-through pants, named Laurent Potdevin as chief executive and said founder Chip Wilson would step down as non-executive chairman.

Potdevin replaces Christine Day, who said in June that she would leave the company once a replacement was found.

Day was behind Lulu's blistering growth and its transition from a niche player to a major retailing force.

Day surprised investors with her decision to quit, which followed the March recall of the see-through black pants. The recall also led to the departure of its chief product officer.

Lululemon was hit with a U.S. lawsuit in July that accused it of defrauding shareholders by hiding defects in the pants and concealing talks that led to the sudden departure of Day.

The company, due to announce third-quarter results on Thursday, trimmed its forecast for full-year sales and profit in September.

Lululemon's shares, which have fallen about 15 percent since Day announced her intention to quit, were up 1.6 percent before the bell on Tuesday.   Continued...