Lululemon's chairman, Dennis "Chip" Wilson, sold stock worth $50 million just days before shares slumped following CEO Christine Day's resignation, according to a Reuters report.
Reuters goes on to cite a Wall Street Journal report — which in turn cites InsiderScore.com, a site which tracks insider trading and institutional ownership — that Wilson set up plans to sell stock back in December. Wilson founded the company in 1998 and remains its largest voting shareholder.
Shares of Lululemon slumped following Day's announcement, despite reporting net revenues of $346 million for the first quarter ended May 5, an increase of 21% from $286 million in the first quarter of fiscal 2012. The company's comparable-stores sales for the first quarter increased by 7% on a constant-dollar basis.
When discussing the company's first quarter results and her exit, Day referred to the company's mishap with its Luon black yoga pants, which were too sheer and had to be pulled off shelves back in March and which the company began selling again a week ago.
"While we regret that we had quality issues with our black Luon [yoga pants] we are proud of the organization’s ability to get Luon delivered back into our stores within 90 days of having pulled it from our line, all the while keeping our guests happy and engaged with the brand,” Day said.
Click here to read the Reuters report.