“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 explained. The Board of Directors has immediately begun a search process for a proven and highly-experienced global CEO.

“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 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 organisation. Protecting the organisation's culture is one of the Board's most important duties.”

Newly expanded role

In his newly expanded role as Executive Chairman, Mr Murphy will focus on achieving long-term, sustainable results for all stakeholders. Three of lululemon's senior leaders are being elevated and will take on additional responsibilities, reporting to Mr Murphy: Celeste Burgoyne, Executive Vice President, 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, Chief Operating Officer, will have responsibility for all operations related to finance, supply chain, people, and technology; and Sun Choe, Senior Vice President 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. 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 organisation, we believe this trio of leaders will take lululemon from strength to strength,” said Mr Murphy.

lululemon also reaffirmed its updated guidance provided on 8 January 2018, that reflects the ongoing momentum of the business. In addition, the company's growth strategies remain on track to achieve US$ 4 billion in revenue in 2020.

Four leaders

Glenn Murphy has taken an active role in the strategic direction of the company since joining the Board in 2017. He has more than 30 years of success leading retail organisations to grow and succeed. He is the founder and CEO of FIS Holdings, a consumer-focused investment firm deploying a combination of operating guidance and capital flexibility.

Celeste Burgoyne, Executive Vice President, Americas, will continue to oversee all channel and customer-facing aspects of the North American business, including stores and e-commerce, and will now add oversight of the company's international regions, as well as brand marketing. Ms Burgoyne joined lululemon in 2006 to lead the US expansion and has since held a series of roles of expanding responsibility.

Stuart Haselden, Chief Operating Officer, will continue to oversee all operations related to finance, supply chain, legal and technology, and will now add oversight of our strategic planning and people and culture functions. Stuart joined lululemon as Chief Financial Officer in 2015. Prior to joining lululemon, his career spans 15 years of executive leadership at global apparel retailers.

Sun Choe, Senior Vice President of Merchandising, will continue to oversee merchandising and will now add all aspects of product design, innovation and development to her portfolio. She joined the company in 2016 as Chief Global Product Merchant with extensive experience in senior leadership roles at well-known brands, including Madewell, West Elm and Urban Outfitters.

www.lululemon.com