Lululemon announces its CEO is stepping down as it looks to new product styles

Article contentVANCOUVER — Lululemon Athletica Inc. announced a CEO transition while reporting its third-quarter earnings as the company looks to turn around its U.S. business and navigate the current tariff environment.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentCEO Calvin McDonald will be stepping down from his role effective Jan. 31, according to a press release from the company on Thursday. Lululemon CFO Meghan Frank and COO Andre Maestrini will serve as interim co-CEOs as the company searches for its next leader.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article content“In my conversations with the board, we carefully considered what’s ahead for the company and for my own journey. Together we agreed that the timing is right for a change as we near the end of our five-year plan cycle,” McDonald said on an earnings call Thursday.Article contentArticle contentMcDonald had been at the helm of the company for seven years and will serve as a senior advisor to the company through March 31 of next year. Lululemon’s board of directors are currently searching to identify its next CEO.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentHe added that the company’s current product mix, particularly in North America, does not reflect the company’s vision for the future, with changes in the works.Article content“I believe that we have a strong pipeline of innovation and approach to new style creation. You’ll see the impact of this work beginning in spring 2026 and continue to strengthen throughout the year,” he said.Article contentFrank said on the call that the company is working to “drive acceleration” in its U.S. business, while maintaining momentum in its international regions.Article content“We began this work last year as we saw the U.S. business slow, and we expect to see the most significant benefits of our work streams in 2026,” she said.Article contentDuring the third quarter, Lululemon said revenue fell in its U.S. and Canadian businesses by three and one per cent, respectively. In contrast, the company saw a 46 per cent rise in its revenue from mainland China.Article contentArticle contentFrank also noted the company is continuing to navigate tariffs.Article content“We’re taking actions in both the near term and long term to mitigate the increased tariff costs. These include strategic pricing actions, supply chain initiatives, including vendor negotiations and DC (distribution center) network efficiency, and enterprise-wide savings initiatives,” she said.Article contentIn September, while reporting its second-quarter results, Lululemon updated its guidance for 2025 with an estimated reduction in gross profit, reflecting the impact of tariffs and the removal of the de minimis exemption, which had allowed packages worth US$800 or less to ship south of the border without duties.Article content“We now expect a 220-basis-point, or approximately US$240-milion, mitigated impact on gross margin for the year,” Frank said at the time. Article contentLululemon reported net income of US$306.8 million during its third quarter, down from US$351.9 million during the same period last year.Article contentIt amounted to earnings per diluted share of US$2.59 for the quarter, down from US$2.87 in the prior quarter.Article contentThe Vancouver-based company, which keeps its books in U.S. dollars, reported its revenue reached US$2.6 billion during the third quarter, up seven per cent from US$2.4 billion last year.Article contentThe company’s board of directors also approved a US$1 billion increase to its stock repurchase program.Article contentThis report by The Canadian Press was first published Dec. 11, 2025.Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? 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