Shakeup at Lululemon as CEO resigns amid ‘conduct’ allegations
Shakeup at Lululemon as CEO resigns amid ‘conduct’ allegations
In a surprise move, the yoga-wear and athleisure retailer announced that Laurent Potdevin has resigned as CEO and as a member of the company's board, effective immediately. Lululemon said Potdevin’s conduct “fell short” of the company’s standards. But it offered no specifics as to the nature of his behavior.
“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 on Monday.
Lululemon, which will conduct a global search for a new chief executive, named chairman Glen Murphy as executive chairman. Murphy, founder and CEO of FIS Holdings investment firm, served as chairman and CEO of Gap Inc. from 2007 to 2014. Prior to that, he served as chairman and CEO of Shoppers Drug Mart and held senior leadership roles at Loblaw Companies.
"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," said Murphy, who joined the Lululemon board last year. "Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization's culture is one of the board's most important duties."
Neil Saunders, managing director of GlobalData Retail, commented that Potdevin’s exit is a blow to Lululemon.
“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,” Saunders said.
In addition to Murphy, three of Lululemon's senior leaders will also take on additional responsibilities, reporting to Murphy. Celeste Burgoyne, executive VP, Americas, will oversee all channel and brand-facing aspects of the global business, including stores and e-commerce, as well as brand marketing; Stuart Haselden, COO, will have responsibility for all operations related to finance, supply chain, people, and technology; and Sun Choe, senior VP of merchandising, will guide all aspects of product development, design, innovation, and merchandising.
"The board is entirely confident that Celeste, Stuart and Sun -- three leaders deeply tied to the recent momentum in the business -- can continue to execute on Lululemon's growth strategy and drive global performance,” Murphy said. “Based upon their contributions to the recent expansion of the business, their history of collaboration with one another and their strong support across the Lululemon organization, we believe this trio of leaders will take Lululemon from strength to strength."
Lululemon reaffirmed its updated guidance provided on January 8, 2018, that reflects the ongoing momentum of the business. In addition, the company's growth strategies remain on track to achieve $4 billion in revenue in 2020.
In a surprise move, the yoga-wear and athleisure retailer announced that Laurent Potdevin has resigned as CEO and as a member of the company's board, effective immediately. Lululemon said Potdevin’s conduct “fell short” of the company’s standards. But it offered no specifics as to the nature of his behavior.
“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 on Monday.
Lululemon, which will conduct a global search for a new chief executive, named chairman Glen Murphy as executive chairman. Murphy, founder and CEO of FIS Holdings investment firm, served as chairman and CEO of Gap Inc. from 2007 to 2014. Prior to that, he served as chairman and CEO of Shoppers Drug Mart and held senior leadership roles at Loblaw Companies.
"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," said Murphy, who joined the Lululemon board last year. "Culture is at the core of Lululemon, and it is the responsibility of leaders to set the right tone in our organization. Protecting the organization's culture is one of the board's most important duties."
Neil Saunders, managing director of GlobalData Retail, commented that Potdevin’s exit is a blow to Lululemon.
“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,” Saunders said.
In addition to Murphy, three of Lululemon's senior leaders will also take on additional responsibilities, reporting to Murphy. Celeste Burgoyne, executive VP, Americas, will oversee all channel and brand-facing aspects of the global business, including stores and e-commerce, as well as brand marketing; Stuart Haselden, COO, will have responsibility for all operations related to finance, supply chain, people, and technology; and Sun Choe, senior VP of merchandising, will guide all aspects of product development, design, innovation, and merchandising.
"The board is entirely confident that Celeste, Stuart and Sun -- three leaders deeply tied to the recent momentum in the business -- can continue to execute on Lululemon's growth strategy and drive global performance,” Murphy said. “Based upon their contributions to the recent expansion of the business, their history of collaboration with one another and their strong support across the Lululemon organization, we believe this trio of leaders will take Lululemon from strength to strength."
Lululemon reaffirmed its updated guidance provided on January 8, 2018, that reflects the ongoing momentum of the business. In addition, the company's growth strategies remain on track to achieve $4 billion in revenue in 2020.