Friday, April 18th10.4°C
21417
20944

Lululemon founder steps down

The founder and chairman of clothing retailer Lululemon Athletica is stepping down, about a month after he made controversial comments seemingly blaming customers' weight for the company's recent sheer pants problem.

In a statement from Lululemon early Tuesday, the Vancouver-based retailer said Chip Wilson will resign prior to the company's annual meeting next June and be replaced by Michael Casey, the lead director of the board.

For months, Lululemon (NASDAQ:LULU) has been struggling to deal with issues regarding the sheerness of its Luon yoga pants after pulling them from store shelves in April because they were see-through, costing the company millions of dollars in sales.

Lululemon had blamed the problems in the spring on a style change and production issues.

But in an interview last month, Wilson ignited a firestorm by suggesting to Bloomberg TV that production issues may not be the only issue.

"Quite frankly, some women's bodies just actually don't work for it," he said. "It's really about the rubbing through the thighs, how much pressure is there."

Since then, a number of online petitions have surfaced calling for Wilson to apologize.

In addition to his resignation, the board of directors at Lululemon said it has appointed Laurent Potdevin as the new CEO to succeed Christine Day, who was CEO since 2008 and announced her intention to resign in June.

Day is expected to remain with the company through the end of the company's fiscal year to ensure a smooth transition.

"After a thorough search, Laurent emerged as the natural choice to lead our continued growth and global expansion," said Casey.

"We believe Lululemon will benefit from Laurent's leadership experience and proven track record of success in building global brands.

Potdevin most recently served as president of TOMS Shoes, a company founded on a goal of matching every pair of shoes purchased with a pair of new shoes given to a child in need. Potdevin previously spent 15 years at Burton Snowboards, serving as president and CEO from 2005-2010.

"I am excited and honoured to be joining Lululemon," said Potdevin.

"It is an exceptional brand with an extraordinary team that creates technical, beautiful products, and builds authentic consumer experiences."

Lululemon is expected to release its latest quarterly results on Thursday, but said it will hold a conference call Tuesday to further discuss the executive changes.

The company is also battling several legal issues as a result of the sheer pants issue.

In July, a third class-action lawsuit was filed against Lululemon in a New York court related to the controversial recall of the Luon pants.

Morgan & Morgan, a major American law firm, launched the action on behalf of investors who bought Lululemon stock between March 21 and June 10.

Like the other suits, the July filing alleges disclosure shortcomings that artificially inflated the retailer's stock price.

The class action claims defects that made the pants see-through resulted in part from the company's alleged attempts to raise profit margins by cutting costs. It also alleges Lululemon stock was artificially inflated as a result of the defendants' positive statements.

The first suit was filed in May in Delaware by the Hallandale Beach Police Officers and Firefighters' Personnel Retirement Fund in May. The fund filed suit over Lululemon's decision to increase potential bonuses for executives prior to announcing the recall.

The second suit was filed in New York in July on behalf of plaintiff Houssam Alkhoury.

None of the allegations have been tested in court.

The company's stock fell four cents Monday to close at US$70.29 in New York.



Read more Business News

20260


Recent Trending




Today's Market
S&P TSX14500.39+53.87
S&P CDNX998.770.80
DJIA16408.54-16.31
Nasdaq4095.516+9.291
S&P 5001864.85+2.54
CDN Dollar0.9067-0.0017
Gold1293.80-9.2999
Oil104.59+0.83
Lumber326.10-2.70
Natural Gas4.735+0.205

 
Okanagan Companies
Pacific Safety0.115+0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.29+0.07
Cantex0.055+0.01
Anavex Life Sciences0.3750.00
Metalex Ventures0.08+0.005
Russel Metals30.66+0.11
Copper Mountain Mining2.35-0.07
Colorado Resources0.255-0.01
ReliaBrand Inc0.12-0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.25+0.02

 
19691


21596

FEATURED Property
1907382982 Long Ridge Court
5 bedrooms 4 baths
$1,175,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Learning to flirt with the edge

With all of the adventure activities I have done and still do, I wonder sometimes if the edge still exists. The systematic approach to learning a new adventure or extreme activity combined with the r...


Time spent prospecting

How much time should you put into prospecting? The question is a bit of a puzzle. Ideally, there would be a reference book that lists, by industry, how much time you should invest in prospecting acti...


Valuation fears grip markets

The Big Picture Valuation fears grip markets Growing concerns about the level of stock market valuations sparked a risk-off trade in global markets this week. Investors are worried that many companies...

_



21604

21604


Member of BC Press Council


21202