Shares rise after Lululemon announces change of command

Shares ofLululemon Athletica moved higherWednesdayafter the Vancouver-based yoga apparel retailer reported a better-than-expectedprofitbut said it is pulling out ofJapan and changing up its CEO.

The stock a high-flyingnewcomer thatreached $60.70 US lastfall beforelosing altitude was up $2.43 US to $34 US in early Nasdaq trading. In Toronto, it was up $2.50 Cdn to$34.67 Cdn. It was launched in an IPO last summer at $18 US.

The company, builtaround the conceptof"yoga-inspired" clothing, said its profit for the three months to Feb. 3was $14.6 millionUS or 21 cents a share. Analysts had expected about 19 cents a share.

The profit a year earlier was $887,000US or a penny a share. Revenue was up strongly to $105 millionUS from $52 million US a year earlier.

In a separate statement, the company said CEO Robert Meers is retiring. He will step down June 30 but will serve as an advisor for the rest of the company's 2008 bookkeeping year.

Meers, whojoined the company in 2005, "was instrumental in establishing the strategic platform for the Lululemon brand and its growth throughout North America and internationally," it said.

The new CEO will be former Starbucks executive Christine Day, who joined Lululemon in January as executive vice-president of retail operations. She has been appointedpresident, chief operating officer and CEO designate, the company said.

Meanwhile, Meers said Lululemon'sfourJapanese stores will be closed because they aren't worth the trouble.

"Japan represents less than 1.5 per cent of our revenues but has been taking a disproportionate amount of management time and attention over this past year,"he said in statement.

The company's top prioritiesare growth in the United States, whereit plans to open 35 stores in 2008, and the development of an e-commerce business, he said.