Lululemon CEO Calvin McDonald to Step Down Amid Weak US Sales and Competitive Pressures
Calvin McDonald will step down as Lululemon CEO at the end of January next year after more than seven years in the role. His departure follows weak US sales and a nearly 50% drop in Lululemon's US share price over the past year, despite the company recently upgrading its annual revenue forecast.
The decision to step down was made after discussions with the board and as Lululemon approaches the end of its five-year strategy with a strong senior leadership team in place. International sales growth, particularly driven by China, helped push net revenues to about $2.6 billion by the start of November, though performance in the Americas remained weak.
In September, Lululemon warned that ending the de-minimis exemption and tariffs would cost approximately $240 million in the year. Additionally, the company faces competitive pressure from lower-priced rivals such as Vuori and Alo Yoga. It has also dealt with product issues, including the Breezethrough line being pulled after receiving negative reviews.
During the search for a new leader, Meghan Frank (finance) and André Maestrini (chief commercial officer) have been named co-interim chief executives.
