Lululemon says CEO Potdevin has resigned, to pay him US$5 million
TORONTO: Canadian athleisure wear maker Lululemon Athletica’s chief executive Laurent Potdevin abruptly resigned on Monday effective immediately, with the company saying that he had fallen short of its ‘standards of conduct’ without offering any details.
“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 Vancouver-based company said in a statement. It did not elaborate.
Reuters was unable to reach Potdevin for comment.
Lululemon said in the statement that Chairman Glenn Murphy would become executive chairman, with three senior executives taking on expanded duties and reporting to him.
It also reaffirmed its updated guidance for the fourth quarter of 2017 for revenue of US$905 million to US$915 million.
Lululemon said separately in an exchange filing that it had agreed to pay Potdevin a total of US$5 million in exchange for his agreeing to certain terms including a covenant not to sue the company.
The company’s shares lost 3.5 percent to US$74.71 in after hours trade.
“Today’s announcement is vague and damaging,” Neil Saunders, managing director of GlobalData Retail, said in an emailed statement.
“As a company that prides itself on transparency and openness, we would expect it to have an honest conversation with stakeholders.” — Reuters