The company said the departure of Sheree Waterson, the chief product officer, was part of a plan to reorganize its product team to support long-term growth. It would not comment specifically if the departure was related to the pants problem.

“As the organization matures, organizational structure changes are often required,” the company said in an e-mail response to a query. Ms. Waterson will leave Lululemon effective April 15.

Lululemon late last month pulled its Luon pants from store shelves because the fabric was too sheer. On Wednesday, the company said that after evaluating its production issues, it found the problem stemmed from incomplete testing protocols combined with a style change in the pants pattern. Lululemon hired a new team, including senior-level positions in quality, raw materials and production, to look into the problem and oversee production of the Luon pants, which cost $72 to $98.

Luon pants, made from a combination of nylon and Lycra fibers, are one of the retailer’s product staples and account for about 17 percent of all women’s pants in its stores. The company is offering customers full refunds or exchanges. Lululemon did not say when it expected Luon pants to be back on its shelves.

Lululemon’s chief executive, Christine Day, said the company stood by the outlook it offered March 21.

At that time, the company said withdrawing Luon pants would cut its revenue by $12 million to $17 million in the first quarter and by $45 million to $50 million for the rest of the year, particularly in the second quarter. It also said it expected first-quarter earnings of 28 to 30 cents a share. It reported earnings of 32 cents a share a year ago.

The company expects the recall will lower its earnings by 11 to 12 cents a share.

Analysts expect earnings of 29 cents a share on revenue of $339.7 million, according to FactSet.

Article source: http://www.nytimes.com/2013/04/04/business/lululemon-chief-product-officer-to-exit.html?partner=rss&emc=rss