"Lululemon Athletica Inc, said Thursday that its CEO Calvin McDonald is stepping down effective Jan. 31 as the athletic wear maker wrestles with a year of disappointing sales. The company, based in Vancouver, Canada, said that McDonald and the board are working together to manage a "smooth transition," and he will serve as a senior advisor to the company through March 31, 2026. The board said it was conducting a comprehensive search in partnership with a leading executive search firm to select his successor."
"Marti Morfitt, the board's chair, will take on the expanded role of executive chair, effective immediately, to "ensure the continued execution of the company's near- and long-term growth strategy during the leadership transition." In addition, Meghan Frank, chief financial officer, and André Maestrini, chief commercial officer, will serve as interim co-CEOs following McDonald's exit, the company said. The announcement came alongside Lululemon's third-quarter results, which showed continued malaise in the U.S."
"Net revenue in the Americas declined 2%, while international revenue increased 33%. Quarterly profit dropped 13%. Lululemon has been wrestling with a host of problems such as higher costs from President Donald Trump's tariffs to stiffer competition from the likes of Alo Yoga. The brand is known for its simple workout sets worn by Kendall Jenner and Hailey Bieber. Meanwhile, Lululemon's founder Chip Wilson has been an outspoken critic of the company's direction."
Lululemon's CEO Calvin McDonald will step down effective Jan. 31 and will serve as a senior advisor through March 31, 2026 while the board conducts a comprehensive search for a successor. Board chair Marti Morfitt becomes executive chair immediately to maintain strategy execution, and CFO Meghan Frank plus chief commercial officer André Maestrini will serve as interim co‑CEOs. Third-quarter results showed a 2% decline in Americas revenue, 33% increase internationally, and a 13% drop in quarterly profit. The company faces higher costs tied to tariffs, stronger competition from brands like Alo Yoga, and criticism from founder Chip Wilson.
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