Daijiworld Media Network - Vancouver
Vancouver, Dec 12: In a significant leadership shake-up at Lululemon Athletica Inc, CEO Calvin McDonald will step down from his role on January 31, marking the end of his six-year tenure at the helm of the global athletic wear brand. McDonald will continue as a senior adviser until March 31, 2026, to ensure a smooth transition, according to AP.
The company’s board has initiated a search for his successor with the support of a top executive search firm. Until the appointment of a new CEO, board chair Marti Morfitt will assume the position of executive chair, overseeing strategic operations. Chief financial officer Meghan Frank and chief commercial officer André Maestrini will serve as interim co-CEOs.
The announcement coincides with Lululemon’s third-quarter results, which show a 2 percent decline in net revenue in the Americas, even as international revenue grew by 33 percent. The company’s quarterly profit slipped by 13 percent.
Lululemon has been facing mounting challenges, including increased costs from US tariffs, stiff competition from emerging athleisure brands, and public criticism from founder Chip Wilson regarding the company's direction. Despite its strong brand identity and celebrity appeal, analysts note that the company’s growth momentum has softened.
Commenting on the developments, Neil Saunders, managing director of GlobalData Retail, observed that Lululemon is struggling with a weakened athleisure market, rising competitive pressure, and operational lapses—factors that may have contributed to McDonald’s exit.
Following the announcement, Lululemon’s shares surged by more than 10 percent in after-hours trading.