Lululemon CEO resigns

Lululemon Athletica announced Monday that Laurent Potdevin has resigned as CEO effective immediately, saying he fell short of the company’s standards of conduct.

The Vancouver maker of yoga pants and other athletic-inspired clothing didn’t offer specifics but said it expects all employees to “exemplify the highest level of integrity and respect for one another.”

Lululemon said it has begun the search for a successor.

Potdevin became CEO in January 2014 and led the rebuilding of Lululemon’s brand after a major flub — thousands of stretchy black yoga pants were recalled after customers complained that they were too sheer — cost the company millions and sent the stock tumbling. A previous CEO, Christine Day, had left citing personal reasons. And founder Chip Wilson resigned as chairman in 2015 after suggesting that some women’s bodies were not made for Lululemon’s clothing.

Potdevin also has resigned from the company’s board.

“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 Chairman Glenn Murphy. “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.”

Analyst Neil Saunders, managing director of GlobalData Retail, called on the company to be more clear about the reasons for Potdevin’s departure and said failing to do so would cause speculation that would “ultimately harm the brand.” He also called Potdevin’s exit “a blow to Lululemon.”