UPDATE: Lululemon's unexpected decisions to replace CEO Christine Day and de-list from the Toronto Stock Exchange have caused some panic on the markets, with the company's shares plummeting nearly 13 per cent in overnight trading.

The drop continued through the morning Tuesday, with Lululemon shares hitting US$68.47 at around 11:20 a.m., down nearly 17 per cent from the previous day's close.

The company was also hit with two analyst downgrades overnight. Both UBS and Sterne Agee cut their outlook for Lululemon to Neutral from Buy.

VANCOUVER - Lululemon Athletica Inc. (TSX:LLL) says it will begin looking for a new leader at the yoga clothing maker as chief executive Christine Day announced she is leaving the company.

The company will also delist from the Toronto Stock Exchange later this month due to "minimal trading volume of its shares." Lululemon is also listed on the Nasdaq market.

The CEO transition plan comes as the retailer which reports in U.S. dollars, posted a first-quarter profit of $47.3 million or 32 cents per share.

The results met analyst expectations, according to a poll of analysts by Thomson Reuters, but marked only a slight increase in profits from a year ago when it earned $47 million or 32 cents per share.

Revenue strengthened 21 per cent to $345.8 million from $285.7 million.

Lululemon aims to remove its shares from the TSX on June 24, saying that the low trading volume "no longer justifies the expenses and administrative efforts associated with maintaining" a dual listing on both the Canadian stock exchange as well as the Nasdaq.

Shares of the company were down eight per cent to $75.26 in after hours trading in New York.

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