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Lululemon announces CEO departure after seven-year tenure
Calvin McDonald, chief executive of Lululemon Athletica, will leave the company at the end of January 2026, the Canadian athleisure brand confirmed on Friday.
Timing follows mixed financial performance
McDonald's exit arrives as Lululemon grapples with declining sales in the United States, its largest market, and a near 50 % drop in its share price over the past twelve months. Despite these challenges, the company recently raised its annual revenue forecast after stronger-than-expected sales in recent months.
In a LinkedIn statement, McDonald explained the decision followed discussions with the board, noting that the conclusion of the company's five-year strategy and a "strong senior leadership team" made the transition timely.
International growth contrasts with US struggles
While Lululemon reported a sales boost in international markets-particularly in China-its Americas division has faced headwinds. The company's stock on the Nasdaq reached its peak in late 2023 but has since trended downward.
In September, shares fell sharply after Lululemon warned of the financial impact of new US tariffs. The company estimated that the elimination of the de-minimis exemption-a former duty-free loophole for low-cost imports-would cost it approximately $240 million this year. Many of Lululemon's suppliers are based in China, Vietnam, and other Asian countries.
Holiday sales offer temporary relief
Despite the challenges, Lululemon reported net revenues of $2.6 billion for the period leading up to early November, driven by strong performance in China and other global markets. McDonald acknowledged early holiday sales as encouraging but noted a slowdown in demand post-Thanksgiving, as consumers increasingly seek lower-priced alternatives.
Competition from brands like Vuori and Alo Yoga has intensified, with analysts suggesting Lululemon must reinvigorate its appeal to justify premium pricing.
"The brand needs to go back to the drawing board and work out ways to make its products 'must-have' items again,"
Dan Coatsworth, Head of Markets at AJ Bell
Recent missteps add to pressures
Under McDonald's leadership, Lululemon faced criticism over product quality and marketing decisions. Last year, the company pulled its $98 Breezethrough leggings from shelves after customers complained about discomfort caused by the V-shaped back seam and waistband design.
In 2020, the brand faced social media backlash for promoting an event on "resisting capitalism," further complicating its public image.
Leadership transition begins
Lululemon appointed finance chief Meghan Frank and chief commercial officer André Maestrini as co-interim CEOs while the board searches for a permanent replacement. Board chair Marti Morfitt praised McDonald's "visionary leadership," crediting him with transforming Lululemon into one of retail's strongest brands.
Analysts, however, described McDonald's tenure as a mix of highs and lows. Coatsworth compared it to an athlete's peak followed by a rapid decline, noting that while McDonald capitalized on the athleisure boom, recent missteps and external pressures have left the company seeking fresh direction.
