Lululemon Says CEO Laurent Potdevin Has Resigned -- Update
By Sara Germano and Joann S. Lublin
Yoga-pants maker Lululemon Athletica Inc. said its chief executive, Laurent Potdevin, has resigned from the company and that he had fallen short of the company's standards of conduct.
The company said Mr. Potdevin, who had been its top executive since January 2014, had resigned as CEO and a board member, effective immediately.
It wasn't immediately clear how Mr. Potdevin had fallen short of the company's standards. There were "a range of instances" where his actions didn't align with company policy on leadership and conduct, according to a person familiar with the matter.
"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," the company said in a statement.
Mr. Potdevin couldn't immediately be reached for comment. Before joining Lululemon, he served as president of Toms Shoes and as chief executive of Burton Snowboards, where he spent 15 years.
Lululemon's sales have remained strong during a difficult period for many retailers and its shares, which have rallied nearly 20% over the past year, were trading near all-time highs. Shares fell as much as 4% in after-hours trading.
"It is the responsibility of leaders to set the right tone in our organization," said Glenn Murphy, Lululemon's chairman, in a statement. "Protecting the organization's culture is one of the Board's most important duties."
Mr. Murphy, a former CEO at Gap Inc., will take over additional duties in the interim while the Vancouver-based company starts a search for a new CEO.
Since joining the company four years ago, Mr. Potdevin, 50 years old, has guided Lululemon through supply-chain issues and revamped its assortment of colorful athletic gear.
In a regulatory filing Monday, Lululemon said it would pay Mr. Potdevin an upfront cash payment of $3.35 million as well as $1.65 million over 18 months as part of his separation agreement. He won't receive any continued or accelerated vesting of equity awards.
Write to Sara Germano at firstname.lastname@example.org and Joann S. Lublin at email@example.com
(END) Dow Jones Newswires
February 05, 2018 16:37 ET (21:37 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.