Calvin McDonald, the current CEO of Lululemon Athletica, is scheduled to resign from his position on January 31. He plans to continue serving as a senior advisor until March 31. The company, known for its athletic leisure-wear, has launched a comprehensive search to identify a suitable successor for the CEO role.
Since McDonald’s appointment in 2018, the Canadian-based company has experienced significant global growth. However, the latest quarterly sales figures indicated a year-on-year decline in the Americas.
In the third quarter earnings report for the fiscal year 2025, Lululemon’s diluted earnings per share (EPS) fell by 10 per cent and store revenues remained steady. Despite this, total revenues grew by 7 per cent due to a 33 per cent surge in international markets.
Neil Saunders, the Managing Director of analytics firm GlobalData, described these figures as “soft.” He outlined three issues Lululemon is facing in the North American market: a softer market for athletic leisure-wear with little organic growth available, increasingly fierce and high-quality competition, and faltering execution against this challenging backdrop.
Despite the criticisms, McDonald expressed pride as he announced his departure. McDonald acknowledged that his tenure as Lululemon’s CEO has been the pinnacle of his career. He conveyed immense pride in the team’s achievements over the past seven years, highlighting the transformation of the athletic apparel industry and the substantial opportunities that lie ahead for Lululemon.
He expressed confidence in the product pipeline and action plan developed during his term, assuring that they would yield positive results and provide value to shareholders. McDonald committed to supporting the transition and guiding the leadership team in his advisory role.
Under McDonald’s leadership, Lululemon expanded into over 30 countries and boosted its mainland China business into becoming the company’s second-largest market. The board also recognized his efforts in broadening Lululemon’s product portfolio.
Following the announcement of McDonald’s departure, Lululemon’s stock (LULU) rose by 20 points after hours.
In the interim period, Chair Marti Morfitt will assume the expanded role of executive chair effective immediately.
Morfitt expressed gratitude for McDonald’s contributions and appreciated his support for ensuring a smooth transition over the coming months. As the board anticipates the company’s future, it is committed to finding a leader with a proven track record of guiding companies through growth and transformation.
Who is Calvin McDonald?
Calvin McDonald is the outgoing CEO of Lululemon Athletica who has led the company since 2018.
What has been the impact of McDonald’s leadership on Lululemon?
Under McDonald’s leadership, Lululemon expanded into over 30 countries, and its mainland China business became the company’s second-largest market. He also broadened Lululemon’s product portfolio.
Who will be taking over after McDonald’s departure?
Marti Morfitt, the current Chair, will assume the expanded role of executive chair immediately. The company is conducting a comprehensive search for a new CEO.
