Calvin McDonald to Step Down as Lululemon CEO in January 2026 Amid Market Challenges
Calvin McDonald will step down as the CEO of Lululemon at the end of January 2026 after more than seven years in the role. His departure follows discussions with the board, with McDonald noting that, as the company's five-year strategy nears its end and a strong leadership team is in place, a leadership change is timely.
Lululemon has recently upgraded its annual revenue forecast due to better-than-expected sales over recent months. Net revenues reached $2.6 billion by early November, with international sales, led by China, boosting overall performance. However, sales in the Americas have declined, contributing to a share-price decline of about 50% over the past year.
The brand faces growing competition from lower-priced peers such as Vuori and Alo Yoga. Analysts have pointed out the need for Lululemon to regain its status as a must-have brand, noting that the Breezethrough leggings were withdrawn after receiving negative feedback.
In addition, tariff-related issues have posed challenges, including concerns about the end of the de-minimis exemption. Import taxes related to these tariffs are estimated to cost the company about $240 million this year.
During the search for a new leader, Meghan Frank and André Maestrini have been appointed as co-interim chief executives.
