Lululemon CEO Calvin McDonald Steps Down Amid Slowing Momentum and Rising Competition

Lululemon said CEO Calvin McDonald will step down on January 31, ending a tenure that transformed the brand but recently faced pressure from slowing sales and shifting consumer preferences. He will remain an advisor through March as the company searches for a new chief executive.

CFO Meghan Frank and Chief Commercial Officer André Maestrini will act as interim co-CEOs, while board chair Marti Morfitt will take on an expanded leadership role. The shake-up follows public criticism from founder Chip Wilson and a stretch of underperformance in the Americas.

The announcement accompanied Lululemon’s latest results: Q3 earnings and revenue topped estimates, but guidance for the holiday quarter fell short. Sales in the Americas dropped 2% and comparable sales declined 5%, while international revenue surged 33%, highlighting the brand’s reliance on overseas growth.

Lululemon has also been dealing with higher costs tied to tariffs and more competition in the athleisure market, as consumers increasingly shift away from yoga wear toward other apparel. The company has expanded into footwear, outerwear, and casual clothing to broaden its appeal.

Despite recent challenges, Lululemon raised its full-year outlook. Shares jumped roughly 10% in extended trading as investors reacted to the leadership change and updated forecast.