ralph lauren polo dress Lululemon says CEO Laurent Potdevin has resigned
Kevork Djansezian, Getty Images
Potdevin, who joined the company as the top executive in 2014 and also served as a Lululemon board member, is leaving both posts immediately, the Vancouver based company said.
The announcement provided no details about actions that led to Potdevin’s resignation. Instead, the company announcement said: “Lululemon expects all employees to exemplify the highest levels of integrity and respect for one another, and Mr. Potdevin fell short of these standards of conduct.”
“Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization,” Murphy said in a statement issued by the company.
Lululemon shares fell 2.5% to $75.50 in extended trading, extending a 1.5% slide in trading during Monday’s regular trading session.
Lululemon agreed to pay Potdevin a $3.35 million lump sum cash payment as soon as practicable after the effective date of his departure, plus a $1.65 million cash payment to be distributed in installments over an 18 month period, the company said in a Monday filing with the Securities and Exchange Commission.
He was appointed to Lululemon’s board and the chief executive position to succeed Christine Day, who resigned after a six year tenure.
Potdevin’s arrival came as Lululemon founder Chip Wilson stepped down as chairman of the company’s board amid controversy. In a TV interview, Wilson said some women’s bodies “just don’t actually work” for Lulemon yoga pants, because thighs rubbing against the stretch material causes pilling over time.
In updated financial guidance issued last month, Lululemon raised its forecast of net revenue to a range of $905 million to $915 million for the fourth quarter that ends Jan. 28. The company had previously issued guidance of $870 million to $855 million.
Additionally, the company projected diluted earnings per share of $1.24 to $1.26 for the quarter, up from the previously reported guidance of $1.18 to $1.21 per share.
As Podevin exits, three of the company’s senior leaders are being elevated to take on additional responsibilities as they report to Murphy, the company said.
Celeste Burgoyne, executive vice president, Americas, will oversee all channel and brand facing aspects of the global business, including stores, e commerce, and brand marketing. Chief Operating Officer Stuart Haselden will be responsible for all operations related to finance, supply chain, people, and technology. And Sun Choe, senior vice president of merchandising, will oversee product development, design, innovation, and merchandising.