Lululemon slumps after its CEO unexpectedly resigns for violating company's standards
- Lululemon is down 3% in after-hours trading following the unexpected resignation of its CEO.
- The company said the former executive fell short of its code of conduct.
Shares of luxury athletic apparel maker Lululemon Athletica fell more than 3% after-hours Monday following the abrupt resignation of CEO Laurent Potdevin. The company said he fell short of its code of conduct.
"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," executive chairman Glenn Murphy said in a statement. "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," Murphy added.
Lululemon did not elaborate on any specific actions by Potdevin, but it's not the first time a company executive has created a public relations nightmare.
In 2013, founder Chip Wilson told Bloomberg TV that "quite frankly, some women's bodies just actually don't work" in Lululemon's pants.
Potdevin took on the role of CEO in January 2014 from Christine Day, who resigned because she was "exhausted." The company is now searching for a replacement.
Shares of Lululemon are down 1.5% this year.