Lululemon CEO Calvin McDonald to step down amid languishing sales in the US
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Article contentNEW YORK (AP) — Lululemon Athletica Inc, said Thursday that its CEO Calvin McDonald is stepping down effective Jan. 31 as the athletic wear maker wrestles with a year of disappointing sales.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe company, based in Vancouver, Canada, said that McDonald and the board are working together to manage a “smooth transition,” and he will serve as a senior advisor to the company through March 31, 2026.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentThe board said it was conducting a comprehensive search in partnership with a leading executive search firm to select his successor. McDonald took the helm in 2018.Article contentArticle contentLululemon said Marti Morfitt, the board’s chair, will take on the expanded role of executive chair, effective immediately, to “ensure the continued execution of the company’s near- and long-term growth strategy during the leadership transition.”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 contentIn addition, Meghan Frank, chief financial officer, and Andre Maestrini, chief commercial officer, will serve as interim co-CEOs following McDonald’s exit, the company said.Article contentThe announcement came alongside Lululemon’s third-quarter results, which showed continued malaise in the U.S. Net revenue in the Americas declined 2%, while international revenue increased 33%.Article contentQuarterly profit dropped 13%.Article contentLululemon has been wrestling with a host of problems such as higher costs from President Donald Trump’s tariffs to stiffer competition from the likes of Alo Yoga. The brand is known for its simple workout sets worn by Kendall Jenner and Hailey Bieber. Meanwhile, Lululemon’s founder Chip Wilson has been an outspoken critic of the company’s direction.Article content“The perfect pose that the brand used to execute with ease has given way to a much scrappier posture that has been present for quite some time, ” Neil Saunders, managing director of GlobalData Retail, wrote in a note published on Thursday.Article contentSaunders noted that Lululemon faces three problems: The market for athleisure is weaker than it was, while the competition is “more intense and of a higher caliber.” He also said that against this backdrop Lululemon’s execution has faltered.Article contentHe noted that Wilson’s criticism of the company made it difficult for McDonald, and he believes that is one of the reasons for his exit.Article contentShares were up more than 10% in after hours trading Thursday when the news was announced.Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? The career of the man expected to be Canada’s new U.S. ambassador Finance Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy This generation of Canadians is rapidly increasing its wealth and may soon unseat the boomers Wealth