Athletic apparel retailer Lululemon Athetica Inc. announced that CEO Laurent Potdevin has resigned from his position and as a member of Lululemon’s board of directors as a result of failure to adhere to the company’s standards of conduct. The resignation is effective immediately, and the search is already underway for Potdevin’s replacement.
“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,” says Glenn Murphy, executive chairman of the board. “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.”
The company said in a statement that Lululemon expects all employees to exemplify the highest levels of integrity and respect for one another and that Potdevin did not meet these company standards.
Despite the shake-up, Lululemon, No. 83 in the Internet Retailer 2017 Top 500, says it is still on track to capture $4 billion in revenue in 2020.
During this transition, three senior leaders at Lululemon are taking on expanded roles:
- Celeste Burgoyne, executive vice president of the Americas and who has been with the company since 2006, will oversee all channel and brand-facing aspects of the global business, including stores and e-commerce, as well as brand marketing. Previously, she worked at Abercrombie & Fitch (No. 61) as senior director of sales.
- Stuart Haselden, chief operating officer, will be responsible for all operations related to finance, supply chain, people and technology. Before joining Lululemon in 2015, he spent time in leadership roles with Saks Fifth Avenue and J. Crew Group Inc. (No. 50).
- Sun Choe, senior vice president of merchandising since 2016, will guide all aspects of product development, design, innovation and merchandising. Prior to Lululemon, Choe held senior roles at Madewell, Urban Outfitters (No. 40) and West Elm.
“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,” says Murphy. “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.”
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