Lululemon announced a new CEO on Tuesday, December 10, 2013 Laurent Potdevin,who was previously the President of TOMS Shows and before that, CEO of Burton Snowboards. In a video introduction, Potdevin describes how he plans to position the brand for global
Lululemon has been dealing with brand backlash from its loyal fans ever since the debacle of see-through black tights which cost the brand millions in product refunds and changes in manufacturing back in March. Thier chief product officer was let go after the incident
and not long after, CEO Christine Day announced she was quitting, which prompted shares to drop 15%.
Lululemon has planned however to move into Europe and Asia, and with Potdevin at the helm, this could be a good time for continuing this transition.
However some analysts are skeptical of Potdevin’s skillset, including Christian Buss from Credit Suisse who called him a good “cult-brand” manager. However, given how well TOMS Shoes does within youth culture markets, it’s hard to call it a “cult” brand any longer.
That being said, they do have fierce competitors with Under Armour, which is beocming more popular in the first-layer athletic space, and the Gap’s Athleta line.
Here’s the introduction by Potdevin on his new role at Lululemon.
Lucky Brand Jeans Sold for $225 Million
Fifth & Pacific Cos Inc. has sold their brand Lucky Brand Jeans for $225 million in order to focus on their higher-end brand Kate Spade.
“We believe that by focusing all of our resources on the huge opportunity at Kate Spade, we can deliver the strongest value creation opportunity for our shareholders,” said Chief Executive William McComb.
“This is all about bringing Kate Spade to its full potential.”