Athletic clothing company Lululemon Athletica Inc. announced that CEO Laurent Potdevin has resigned.
The Associated Press reports he "fell short of the company's standards of conduct," but the company did not elaborate on his exact conduct. A company told said they expect employees to "exemplify the highest level of integrity and respect for one another."
"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 Chairman Glenn Murphy told the newswire. "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."
The company says they are already in the process of finding a successor.
Potdevin is the third Lululemon CEO to resign since 2015. His predecessor, Christine Day, departed for personal reasons. Before that, company founder Chip Wilson left the position after making controversial suggestions that some women's figures were not appropriate for Lululemon designs.
Managing director of GlobalData Retail, Neil Saunders, described Potdevin's exit as "a blow to Lululemon" that could "ultimately harm the brand" if the reasons behind the exit were not elaborated on.
"During his tenure, Mr. Potdevin oversaw the steady expansion of Lululemon through both calm and rough periods in the athleisure market," Saunders said. "His innovative approach and his clear sense of Lululemon's values and essence is one of the reasons the company has enjoyed continued success, even while other sporting goods brands struggle to generate growth."
Lululemon's stock price dropped 3 percent after the resignation, after already dropping 1.5 percent during the day's trading.