By Solarina Ho

TORONTO (Reuters) - Lululemon Athletica Inc's outgoing chief executive said on Thursday the upscale yogawear retailer has begun its search for a new leader and will soon fill other senior positions.

A chief executive search firm has been selected, Christine Day told an investor conference in Chicago.

Day stunned markets on Monday when she said she would step down once a replacement was found. Lululemon shares have plummeted some 20 percent since.

The stock was up 4.3 percent at $67.12 on the Nasdaq and up nearly 4 percent at C$68.22 in Toronto trading.

Day's departure follows the March recall of the company's signature yoga pants because they were too see-through, which led to the departure of its chief product officer and put a blemish on Day's leadership.

"I want to give you that assurance that morale is high, that we're connected, and the reality is, I'm coming back to work on Monday. And I'm there until the next CEO is in place. So it is business as usual for us at Lululemon," said Day. She said earlier she notified the board only last Friday of her decision.

Analysts who spoke to company directors have said they were convinced Day was not forced out.

"We interviewed three Board members and it was clear all were enthralled by Ms. Day, her contribution to the (company) and LULU's performance," said John Zolidis, an analyst with The Buckingham Research Group, in a research note.

Day, a former Starbucks executive, was behind the Vancouver-based company's extraordinary growth over the last half decade, turning a niche retailer into a high-profile international brand with big ambitions.

For many shoppers and investors, Day embodied Lululemon, with its distinctive community-oriented culture and fiercely loyal customers.

"(The board) took a chance on me. You know, I was a first-time CEO, but they saw the qualities in me that have created the last five years. And I am confident they will see the qualities in the next person to deliver the next five and 10 years," said Day. "I am not the culture of Lululemon."

Day also said that the search to fill other senior executive positions was winding down. The vacated chief product officer was split into two roles, while a new logistics role was added.

Lululemon is halfway through its process of finding an executive vice president of design and merchandising. It has narrowed its search for the senior vice presidents of product operations and logistics to two candidates each.

It also posted about its CEO search on its Facebook page, with a big red picture with the message "CEO wanted, apply within." By Thursday afternoon, the picture had attracted 1,448 likes and 247 shares.

(Reporting by Solarina Ho; Editing by Janet Guttsman and Nick Zieminski)

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PARIS (Reuters) - European planemaker Airbus expects to sign orders for hundreds of passengers jets at next week's Paris Airshow, the head of parent company EADS said on Thursday.

Chief Executive Tom Enders's remarks came on the eve of the first flight of the company's newest jet, the A350, which he described as a dynamo for tens of thousands of European jobs.

Enders said Airbus would not repeat the "exceptional" tally of more than 700 orders seen at the Paris Airshow two years ago, but he became the latest top executive to underscore resilient demand as airlines worldwide modernize their fleets.

"We should be good for a couple of hundred Airbus orders," he told journalists in Paris, then clarified that he expected "a few hundred orders."

Airbus dropped behind arch-rival Boeing in the order race last year but pulled back into the lead in the first quarter.

Boeing this week played down expectations for a large batch of orders at the June 17-23 Paris Airshow, saying it put less emphasis on such events.

Enders said he was "confident" next week's order announcements would include business for the A350, which industry sources have said may make a flypast at the show.

Europe's newest passenger jet competes with Boeing's lightweight 787 Dreamliner, built mainly from lightweight composites, as well as the older but larger, metallic 777.

Enders said the A350 remained an "immensely challenging" program but added it was in "good shape."

But he stressed much work remained to test and certify the 300-seat jet. "The real work starts tomorrow," he added.

Enders said EADS expected in the summer to complete a strategy review triggered by the failure to carry out a merger with Britain's BAE Systems in 2012.

He denied speculation that EADS could sell its Cassidian defense arm to focus on Airbus and its helicopter unit.

But he said defense would be at the heart of the review, which is designed to plot the direction of the world's second-largest aerospace group over the coming decade.

(Reporting by Tim Hepher; Editing by Leila Abboud and John Wallace)

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By Deepa Seetharaman

DETROIT (Reuters) - Ford Motor Co may branch out and develop new models for Lincoln in fast-growing vehicle segments as part of the second-largest U.S. automaker's latest attempt to revive the struggling luxury brand and boost its profits.

The company did not specify which vehicle segments it was targeting. But in a presentation to investors on Thursday, Ford showed in a chart that it expects the premium small-car and crossover segments to grow sharply by 2015.

Lincoln does not currently offer a small car, but a person familiar with the brand's strategy previously told Reuters that the Lincoln brand is considering a near-luxury compact sedan for 2016 or later.

At the Detroit auto show this year, Ford showed a concept version of the Lincoln MKC compact crossover that is expected to go on sale next year.

There are vehicle markets "that we're not playing in today that we can enter that are high-volume segments and growing fast," Matt VanDyke, who is in charge of Lincoln's development and day-to-day operations, said at an investor conference.

If approved, the small sedan likely would be sold in the United States and China, the world's largest auto market. It would compete against cars like General Motors Co.'s Cadillac ATS and the Mercedes CLA.

Lincoln accounted for a little less than 4 percent of Ford's U.S. vehicle sales last year. But the luxury market is expected to grow quickly in the United States and China. Luxury brands also confer a sense of status to automakers.

Lincoln was the top-selling U.S. luxury brand during the 1990s, at one point selling more than 230,000 cars a year. But sales have since tumbled amid inadequate investment, and the company sold 82,150 vehicles in the United States in 2012, making it the eighth best-selling luxury brand. In comparison, segment leader BMW sold 281,460 vehicles.

Ford is now trying to overhaul the Lincoln brand's musty image and boost sales by developing new models, starting with the MKZ sedan. The automaker also plans to launch the upscale brand in China in the second half of 2014.

But Lincoln's overhaul got off to a shaky start this year when quality and supply issues slowed the MKZ's roll-out. Dealers had expected the sedan by the end of 2012, but inventory reached "normal" levels only this spring.

Company officials said extra checks were needed correct fit and finish problems. Some MKZs were also missing parts due to parts shortages.

Lincoln sales were down 24 percent during the first quarter. But the brand gained momentum in April and May, and during the first five months of 2013, Lincoln sales were down 10.5 percent.

(Editing by Dan Grebler)

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