Lululemon Appoints New CEO; Stock Up

Lululemon Athletica Inc. (LULU) has announced that current vice president of retail operations Christine Day will replace Bob Meers as the yoga retailer's CEO when he retires at the end of June. Ms. Day was appointed president, chief operating officer and CEO designate only three months after being wooed away from Starbucks Corp.(SBUX).

Lululemon also reported better-than-expected fourth quarter earnings of C$0.US21 versus C$0.05 last year, and gave fiscal 2008 earnings guidance in the range of $0.70 to $0.72 compared with consensus estimates of $0.72.

BMO Capital analyst Adam Clark said Ms. Day's promotion was not surprising, given recent comments from Lululemon chairman and founder Chip Wilson, stating the company's next CEO would be a women.

Mr. Clark maintained his "market perform" rating and left his $26 price target unchanged.

Yesterday, during early morning trading, shares in Lululemon rose 3% to C$32.99, which was up C$0.89.