Calvin McDonald will step down as CEO of Lululemon Athletica on January 31. He will remain in his post as a senior advisor until March 31.
The athleisure-wear company said it is conducting a “comprehensive” search for its new CEO.
Since McDonald’s appointment in 2018, the Canadian brand has seen strong growth globally. However, the latest quarterly sales figures show a decline in the Americas year-on-year.
In an earnings report for Q3 in the fiscal year 2025, Lululemon’s diluted EPS (earnings per share) fell by 10 per cent, and store revenues remained flat. Total revenues grew by 7 per cent, buoyed by a 33 per cent surge in international markets.
Neil Saunders, MD of analytics firm GlobalData, called the figures “soft”. “The cause of the woes is the North American market where Lululemon faces three problems,” he added. “The first is that the market for athleisure is softer than it was and there is not all that much organic growth to go around. The second is that the competition is more intense and of a higher caliber. The third is that, against this backdrop, Lululemon’s execution has faltered.”
Despite these criticisms, McDonald expressed pride upon his departure. He said: “Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years.
“Together, we have transformed the athletic apparel industry, and the opportunity ahead for Lululemon is substantial. I believe the outstanding product pipeline we’ve built and the action plan we’ve put into place will yield positive results and deliver value to shareholders in the months and years ahead. I am committed to fully supporting the transition and helping guide our leadership team in my advisory role as they execute against our strategy.”
McDonald expanded Lululemon to more than 30 countries and grew the company’s mainland China business into its second-largest market. The board also credited him with the expansion of Lululemon’s product portfolio.
Following the news, Lululemon’s stock (LULU) increased 20 points after hours.
Chair Marti Morfitt will take on the expanded role of executive chair, effective immediately.
“We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition,” Morfitt said.
“As we look to the future, the board is focused on identifying a leader with a track record of driving companies through periods of growth and transformation to guide the company’s next chapter of success.”
