Lululemon billionaire founder Chip Wilson quits

The billionaire founder of Lululemon Athletica, who sparked controversy when he blamed the problems with the sportswear retailer's yoga outfits on women without a thigh gap, is stepping down as chairman.

The departure of Chip Wilson caps a controversial year for Lululemon, which built one of the hottest brands in North American retail by selling stylish, high-priced yoga outfits to mostly young women.

Michael Casey, lead director of the board, will take over as chairman, the company said in a statement today. Lululemon also named Laurent Potdevin as chief executive officer to replace Christine Day, who said in June that she would leave the retailer when a replacement is found.

In mid-March, Lululemon recalled some of its tighter-fitting yoga pants - accounting for about 17 per cent of all its women's pants - after realising that they were made with a fabric that was too sheer. The discovery left it with a shortage of its trademark product and highlighted weaknesses in its supply chain.

Mr Wilson, who founded Lululemon in 1998 and owns 8.84 per cent of the company's stock, worth $800m at Monday's closing price, is known for his colourful and controversial remarks.

In 2004 Mr Wilson told National Post Business magazine that he chose the name "Lululemon" because L is not in the Japanese vocabulary. "It's funny to watch them try to say it," he said.

In mid-November, he was forced to make a public apology for suggesting that women's heavy thighs were to blame for the line of yoga pants being recalled because they were too sheer.

"It's really about the rubbing through the thighs, how much pressure is there. I mean over a period of time, and how much they use it," he told Bloomberg TV.

In a video posted by the company on YouTube, Wilson said: "I'm sad for the people at Lululemon . . . that have really had to face the brunt of my actions. I take responsibility for all that has occurred and the impact it has had on you. I'm sorry to have put you all through this."

In September, the company cut its annual profit forecast after delays in getting new merchandise restrained sales.

Shares in Lululemon, which have fallen about 15 per cent since Ms Day announced her intention to leave the company after almost six years in the job, closed at $70.34 on Monday on Nasdaq.

Mr Potdevin, who began his career in 1991 at LVMH, most recently served as President of Toms Shoes, a company founded with a mission of matching every pair of shoes purchased with a pair given to a child in need.

Mr Wilson said Lululemon's success would continue to be his highest priority. "I am delighted that Laurent will be joining Lululemon and believe his talents and experience ideally complement our existing management team. I know he will have a strong impact on the business as he has the vision and leadership capabilities necessary to create and direct its future," Mr Wilson said.

The retailer said Ms Day was expected to remain with Lululemon through the end of the company's fiscal year, ensuring a smooth transition.

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