Lululemon CEO Calvin McDonald to leave company amid sales slowdown, shares up over 10%
Lululemon Athletica Chief Executive Officer (CEO) Calvin McDonald is set to step down as the athletic apparel maker tries to accelerate growth after struggling with a year of slow sales.
McDonald will step down by Jan. 31, 2026, and will continue to search for the next Lululemon CEO in the meantime, the company announced Thursday.
“The board is conducting an extensive search process in partnership with a leading executive search firm to identify the company’s next CEO,” Lululemon said in its announcement.
While the search for a new CEO for Lululemon continues, it was stated that the company’s CFO Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs.
Both interim co-CEOs bring extensive global retail experience and proven track records of driving growth at Lululemon.
Marti Morfitt, chairman of the board, will take on an expanded role as chief executive officer.
Serving as CEO of Lululemon was the highlight of my career
Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished,” Calvin McDonald said following the announcement, adding, “I am committed to fully supporting the transition and helping guide our leadership team in my advisory role as we execute on our strategy.”
The announcement comes alongside Lululemon’s third-quarter results showing continued disappointment in the US. Net revenue in the Americas fell 2%, while international revenue increased 33%.
Lululemon shares are on the rise
Lululemon Athletica shares reacted positively to the announcement that Calvin McDonald would step down as CEO, rising more than 10% in after-market trading in New York at 5:50 p.m. local time.
But by Thursday’s close, Lululemon’s share price had fallen more than 50%. Lululemon shares rose 37% during McDonald’s tenure, while the S&P Index rose 142% during the same period.
Who is Calvin McDonald?
Calvin McDonald has been CEO of Lululemon since 2018. Her seven-year tenure at the pricey yoga clothing brand ended under pressure from billionaire founder and shareholder Chip Wilson, who called for board-level changes and a renewed focus on products.
Born and raised in Canada, Calvin McDonald joins Lululemon as CEO after serving as president and CEO of Sephora America for five years. He also served as President and CEO of Sears Canada for two years.
McDonald developed a broad range of retail sales and leadership skills over a 17-year period at Loblaw Companies Limited, Canada’s largest retailer.
He earned an MBA from the University of Toronto and a Bachelor’s degree from the University of Western Ontario.
