Investors at this morning’s Lululemon conference call asked how incoming CEO Laurent Potdevin’s experience might improve supply-chain infrastructure and get products onto shelves – something that Lululemon has had difficulty doing in the past 12 months.
Earlier this year, the company was forced to recall its signature black Luon pants because they were see-through. The large-scale recall resulted in a US$ 17-million write off.
At the cost of delayed shipments, the chain has since implemented increased quality control measures to prevent the mishap from recurring.
As it looks to expand Lululemon globally, the board expressed confidence in Potdevin’s previous experience.
“We were primarily attracted first to his resume of being with quality companies that had premium brands and that had grown on the global scale,” lead director Michael Casey said.
Most recently, Potdevin served as president of Toms Shoes, a footwear company founded with the goal of donating one pair of shoes for every pair bought.
“Building a supply chain to fulfill the needs of our giving model at Toms, which over the past two years probably became the largest-scale gift-in-kind donor model around the world, certainly was a challenge that we tackled,” Potdevin said.
Toms now provides children in need with shoes in over 60 countries.
Prior to that, Potdevin also spent 15 years with Burton Snowboards, serving as CEO and president from 2005-2010.
At the time, Burton had a small European platform, Potdevin said.
“Over a very short period of time, the Burton subsidiary in Europe became the most successful and most profitable subsidiary of the company, maintaining the premium positioning of the brand and the high-performance product that we were known to make.”
Potdevin is set to take the Lululemon reigns from current CEO Christine Day in January 2014.
When asked about his priorities and whether he envisions major changes, Potdevin replied, “The first order of business will be to really immerse myself very quickly and learn all facets of the business.
“I don’t anticipate any major change. The business model is fantastic. The brand is exceptional. The product is outstanding and beautiful.”
