Lululemon CEO Calvin McDonald Steps Down Amid Market Pressures and Mixed Financial Results
Lululemon Athletica Inc. has announced a leadership change as CEO Calvin McDonald prepares to step down. His departure comes amid mixed financial results, with falling profits in the Americas but strong growth overseas. The company has also faced rising costs and stiffer competition in the athleisure market.
McDonald will leave his role on January 31, 2026, after leading the brand for several years. He will remain with the company as a senior advisor until March 31, 2026. In the meantime, the board has appointed two interim leaders: Meghan Frank, the current chief financial officer, and André Maestrini, the chief commercial officer. Both will share the CEO responsibilities while a permanent replacement is sought.
The decision follows a challenging period for Lululemon. Third-quarter results revealed a 2% drop in net revenue across the Americas and a 13% decline in quarterly profit. However, international sales surged by 33%, offering a bright spot in an otherwise difficult quarter. Industry analysts at GlobalData Retail have noted a weaker athleisure market, increased competition, and operational missteps as key pressures on the brand.
Marti Morfitt, the board’s chair, has taken on an expanded role as executive chair, effective immediately. The company has also faced criticism from its founder, Chip Wilson, alongside higher costs due to tariffs. No permanent successor has been named yet, and an executive search firm is assisting in the process.
McDonald’s exit leaves Lululemon in a transitional phase, with interim leaders guiding the company through early 2026. The brand must now address falling profits in its core market while maintaining momentum in international growth. The search for a new CEO will be critical as it navigates ongoing industry challenges.
