Lululemon’s CEO resigns over issue of conduct

(Photo by Stuart C. Wilson/Getty Images for Lululemon Athletica)

NEW YORK— Lululemon Athletica Inc. says Laurent Potdevin has resigned as CEO effective immediately, saying he fell short of the company’s standards of conduct.

The Vancouver-based maker of yoga pants and other athletic-inspired clothing didn’t offer specifics but said Monday it expects all employees to exemplify the “highest level of integrity and respect for one another.”

Potdevin became CEO in January 2014.

Glenn Murphy, chairman of the board, said it’s “the responsibility of leaders to set the right tone” and protecting the organization’s culture is one of the board’s most important duties.

Lululemon said it has begun to search for a successor. The company has been on a rebound as it upgrades its fabrics while pushing online sales and men’s clothing.

Shares in Lululemon fell more than 3 percent after the announcement.