CEO of Lululemon Athletica Inc. Resigns

Laurent Potdevin, the CEO of Lululemon Athletica, is resigning from the retailer, the Canada-based athletic apparel retailer announced on Monday.

Lulullemon CEO Laurent Potdevin exits the company.

According to the company, Potdevin “fell short of … standards of conduct” to respect employees and show integrity. Meanwhile, the board of directors of Lululemon has started looking for a new global CEO. Potdevin will also be removed from his position on the board.

“While this was a difficult and considered decision, the Board thanks Laurent for his work in strengthening the company and positioning it for the future,” stated Glenn Murphy, executive chairman of Lululemon’s board.

“Culture is at the core of lululemon, and it is the responsibility of leaders to set the right tone in our organization,” added Murphy. “Protecting the organization's culture is one of the Board's most important duties.”

The retailer declined to give further comments on why Potdevin had been removed from the company so abruptly, having served there since January 2014. Prior to joining Lululemon, Potdevin was president of Toms Shoes and CEO of Vermont-based Burton Snowboards.

Meanwhile, the shares of Lululemon fell more than 3 percent after the market close on Monday.

The company has promoted three members of its management team, Celeste Burgoyne, Stuart Haselden, and Sun Choe, to oversee more day-to-day operations, marketing, e-commerce growth, product innovation, and supply chain enhancements.

“We believe this trio of leaders will take lululemon from strength to strength,” Murphy stated, as Lululemon looks for a new leader.

While the underlying motive remains unclear, some people see the departure of Potdevin as a “blow to Lululemon,” especially in today’s tumultuous retail environment.

“Although we see Executive Chairman Glenn Murphy as a capable pair of hands in the short term, Lululemon needs a CEO to guide it as it expands overseas and tries to make further gains in its home market,” Neil Saunders, the Managing Director of GlobalData Retail, stated. “It is crucial that the right person is selected, but it is equally [important] that the task is undertaken with urgency so that Lululemon doesn't lose momentum.”

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