Calvin McDonald has been the CEO of Lululemon since 2018. He will relieve in January|@calvinmcdonald|X
Lululemon CEO Calvin McDonald announced he is stepping down in January.
The move follows calls for change from the founder of athleisure company Chip Wilson, following more than a year of underperformance.
McDonald has been the CEO since 2018. CFO Meghan Frank and Chief Commercial Officer Andre Maestrini will serve as interim co-CEOs while the board searches for a new leader.
Lululemon’s stock surged over 9% after the announcement, though it is down nearly 50% so far this year.
The leadership change was revealed on the same day the company posted its fiscal third-quarter earnings, which surpassed Wall Street estimates. Revenue was $2.57$ billion, up from $2.40 billion in 2024. However, its anticipated sales between $3.50 billion and $3.59 billion for the current quarter disappointed investors.
The brand synonymous with yoga pants has seen US sales decline as workout-wear trends shift and Gen Z’s interest wanes.
The retailer also faces heavy competition from low-cost rivals. It sued Costco in July, claiming the wholesale giant is selling cheaper knockoffs of its pricey athleisure products.
Notably, Lululemon’s Q3 revenue decreased 2% in the Americas—its largest market—while it jumped 33% abroad.
The company is expecting an estimated $210 million hit to profits from changes to US tariff exemptions.