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 from his role as the athletic wear maker looks to ramp up their growth after wrestling with a year of slowing sales.

The company in an announcement on Thursday said that McDonald will leave the post by January 31, 2026, and it would meanwhile continue its search for the next Lululemon CEO.

“The board is conducting a comprehensive search process in partnership with a leading executive search firm to identify the company’s next CEO,” Lululemon said in an announcement.

As the search goes on for a new Lululemon CEO, the company's CFO Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs, it said.

Both interim co-CEOs bring extensive global retail experience and proven track records of driving growth at Lululemon, it added.

The chair of the board, Marti Morfitt, will take on an expanded role as executive chair.

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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 after the announcement, adding, “I am committed to fully supporting the transition and helping guide our leadership team in my advisory role as they execute against our strategy.”

The announcement came alongside Lululemon's third-quarter results, which showed continued disappointment in the US. Net revenue in the Americas declined 2%, while international revenue increased 33%.

Lululemon shares rise

Shares of Lululemon Athletica reacted positively to the announcement regarding Calvin McDonald stepping down as CEO, jumping over 10% at 5:50 pm local time in postmarket trading in New York.

Till Thursday's close however, Lululemon share price has declined more than 50%. Lululemon shares rose 37% during McDonald’s tenure, while the S&P Index gained 142% during the same period.

Who is Calvin McDonald?

Calvin McDonald has been the Lululemon CEO since 2018. His seven-year tenure at the expensive yoga clothing brand comes to an end after pressure from billionaire founder and shareholder Chip Wilson, who has called for changes at the board level and a renewed focus on the products.

Born and raised in Canada, Calvin McDonald joined as Lululemon CEO after serving for five years as president and CEO of Sephora Americas. He also spent two years as President and CEO of Sears Canada.

McDonald honed a broad range of retail and leadership skills during a 17-year period at Loblaw Companies Limited, the largest retailer in Canada.

He earned an MBA from the University of Toronto, and Bachelor of Science degree from the University of Western Ontario.