Analysis: Lululemon needs to be clear about the reasons for CEO departure
While the reasons for the departure of Laurent Potdevin are unclear, his exit is a blow to Lululemon.
During his tenure, Mr. Potdevin oversaw the steady expansion of Lululemon through both calm and rough periods in the athleisure market. His innovative approach and his clear sense of Lululemon's values and essence is one of the reasons the company has enjoyed continued success, even while other sporting brands struggle to generate growth.
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. It is crucial that the right person is selected, but it is equally appointment that the task is undertaken with urgency so that Lululemon doesn't lose momentum.
We also believe that today's announcement is vague and damaging. Lululemon owes it to investors and to customers, to be clear about the reasons Mr. Potdevin was made to depart. As a company that prides itself on transparency and openness, we would expect it to have an honest conversation with stakeholders. Failure to do so will likely lead to speculation which could ultimately harm the brand.
During his tenure, Mr. Potdevin oversaw the steady expansion of Lululemon through both calm and rough periods in the athleisure market. His innovative approach and his clear sense of Lululemon's values and essence is one of the reasons the company has enjoyed continued success, even while other sporting brands struggle to generate growth.
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. It is crucial that the right person is selected, but it is equally appointment that the task is undertaken with urgency so that Lululemon doesn't lose momentum.
We also believe that today's announcement is vague and damaging. Lululemon owes it to investors and to customers, to be clear about the reasons Mr. Potdevin was made to depart. As a company that prides itself on transparency and openness, we would expect it to have an honest conversation with stakeholders. Failure to do so will likely lead to speculation which could ultimately harm the brand.