Sephora (EPA: MC) CEO Calvin McDonald will step in to take Laurent Potdevin's place as the CEO of Lululemon (LULU  ). He will receive a $1.25 million base salary and serve on the board of directors. Lululemon has been searching for a new successor for several months now after Potdevin resigned abruptly in February following statements by the company that he engaged in certain behavior which did not meet the company's standards. No legal charges were filed against him, but according to people familiar with the matter, there was a "range of instances" were his actions did not align with those of the company in regards to leadership and conduct. He had served as CEO since January of 2014. Of Potdevin's behavior the company said only that "Lululemon expects all employees to exemplify the highest levels of integrity and respect for one another, and Mr. Potdevin fell short."

McDonald, who is 46 years old, has been the president and CEO of the Americas for Sephora, which is owned by LVMH Louis Vuitton, since 2013. Under him, the company has experienced sales growth, expanded its products, and created new online and in-store customer experiences. Previously, he also served as CEO of Sears Canada (SHLD  ). Mr. McDonald commented, "I'm joining Lululemon at an exciting time, with the brand's strong business momentum, guest loyalty and passionate employees. I look forward to working with the talented team at Lululemon to deliver long-term growth through great product, constant innovation, and serving guests however they choose to engage with us, today and into the future."

While Potdevin's departure didn't put a dent in Lululemon's growth, the company is still struggling to put various brand-image problems to rest. Lululemon is hoping that with McDonald, the company can prove to customers that it is not only a female-focused brand, but that it also respects the female customers that it caters to. Although Sephora and Lululemon operate in quite different categories, both beauty and Lululemon's athleisure products are currently booming markets with huge potential. Their customer base and various market trends also overlap. McDonald is known for his expertise in retail and innovative store designs and positive company culture where employees are respected is something that Lululemon is really hoping to take example from going forward.

Lululemon is not the only retailer battling brand image problems. Nike (NKE  ), for example, faces similar issues as it is trying its best to recover after several top executives departed. Glen Murphy, chairman of the board of directors at Lululemon commented, "Each member of our Board met him during our thorough process. We're confident Calvin will maintain the momentum in the business and take Lululemon to new heights."