Lululemon Athletica Inc. announced Thursday that CEO Calvin McDonald will step down early next year as the brand struggles to compete in the highly competitive industry.
McDonald will step down on January 31, 2026, but will continue to serve as a senior advisor to the company through March 31. Lululemon Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs while the board of directors conducts a search for McDonald’s replacement.
The company says Frank and Maestrini “have extensive global retail experience and proven track records of driving growth at lululemon.” Both will support all aspects of the company during the completion of the search process.
A Lululemon store in a mall. (Zhang Peng/LightRocket via Getty Images)
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Chairman Marti Morfitt will also take on the expanded role of executive chairman “to ensure the continued execution of the company’s short- and long-term growth strategy during the leadership transition,” Lululemon said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LULU | LULULEMON ATHLETICA INC. | 205.74 | +18.73 |
+10.02% |
Lululemon was known for putting casual wear on the map, but today it struggles to compete with rivals, especially in the US. In the past twelve months alone, Lululemon’s stock has fallen nearly 50%.
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McDonald said in the company’s latest quarterly report that its teams remained focused on driving improvements within the U.S. business and maintaining momentum in international regions.
Lululemon signage is seen in a New York City department store. (Michael M. Santiago/Getty Images)
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“We are beginning to make progress on our action plan and continue to expect to see the impact of this work in 2026,” he said, adding that the company is encouraged by its early performance during the holiday season.
An employee moves a mannequin wearing leggings at the Lululemon Athletica Inc. (Simon Dawson/Bloomberg via Getty Images)
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In the last quarter, sales in America fell by 2%, while international sales rose sharply by 33%. Sales in stores open for at least a year increased by 1%, or by 2% adjusted for constant exchange rates. However, sales in stores that have been open for at least a year in America fell by 5%.
