Lululemon Athletica CEO Laurent Potdevin Resigns

(RTTNews) - Sports apparel retailer Lululemon Athletica Inc. (LULU), Monday said its CEO Laurent Potdevin has resigned after falling short of "standards of conduct." Shares of the company fell 3 percent after the news.

The Vancouver, British Columbia-based company said it "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 has immediately begun a search process for new Chief Executive Officer.

"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 organization. Protecting the organization's culture is one of the Board's most important duties."

Three of lululemon's senior leaders will assume expanded roles and will report Executive Chairman Glenn Murphy.