Lululemon Athletica's stock is down over 16% today to $68.50.
This comes after the company announced yesterday that CEO Christine Day is stepping down. The board has hired an executive search committee, and Day will stay on as CEO until her replacement is chosen.
The stock also saw a few downgrades. UBS cut it to 'neutral' from buy and lowered its price target to $72.
Meanwhile, Canaccord Genuity's Camilo Lyon wrote:
"Despite good Q1 results that beat our estimates (32c vs. our 30c), the surprising announcement of CEO Christine Day’s departure is the relevant development that will weigh on the stock in the near term.
"...In our opinion, LULU remains a strong retail growth concept, but we are lowering our P/E multiple to 30x (~1x PEG) from 35x, resulting in our price target reduction to $87 from $92."
Here's a look at that stunning decline:
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