Lululemon market share down.
Lululemon market share is down after Chief Executive Laurent Potdevin has resigned as top executive and member of the company’s board of directors earlier today. The board of directors are searching for a chief executive. Lulu stock is down over 3% on this news.
Lululemon released a statement: “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.”
Laurent Potdevin became the CEO of Lululemon four years ago. Even though drama has always followed this company, under Mr. Potdevin, Lulu stock flourished. There was a time when thousands of black yoga pants were recalled that cost the company millions of dollars. He led the rebuilding of Lululemon’s brand.
For now, Glenn Murphy has been elevated to executive chairman. He said: “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.”
Lululemon will pay Mr. Potdevin $3.35 million in cash right away and $1.65 million over a period of 18 months.