Lululemon CEO to leave after slowdown as shares gain on outlook
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A Lululemon store at Burrard and Robson Streets in downtown Vancouver, B.C. on December 13, 2023. Photo by Jason Payne/ PNGArticle content Lululemon Athletica Inc. said chief executive Calvin McDonald is stepping down as the pricey yoga-wear brand looks to reignite growth amid pressure from upstart competition and its founder.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentMcDonald will depart the company at the end of January, and the company is searching for a replacement. The chair of the board, Marti Morfitt, will take on an expanded role as executive chair. While Lululemon searches for a new top executive, chief financial officer Meghan Frank and chief commercial officer André Maestrini will serve as interim co-CEOsArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentSeparately, the company raised its full-year outlook. Lululemon now sees net revenue in a range of nearly US$11 billion to almost US$11.05 billion, higher than the previous outlook.Article contentPosthasteBreaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.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 Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe shares jumped 12 per cent at 4:37 p.m. in postmarket trading in New York. So far this year through Thursday’s close, the stock has declined more than 50 per cent. Lululemon shares rose 37 per cent during McDonald’s tenure, starting in 2018, compared with a gain of 142 per cent in the S&P 500 Index over the same period.Article contentLululemon’s growth has slowed in recent quarters and that trend is expected to continue, according to analyst estimates, underscoring mounting challenges for the company. Sales growth is near the lowest level since the company went public in 2007 as Lululemon, which largely created the athleisure category and is known for its pricey leggings, faces fierce competition from lower-priced upstarts including Alo Yoga and Vuori.Article contentMcDonald’s departure follows pressure from billionaire founder and shareholder Chip Wilson, who has called for changes at the board level and a renewed focus on the products.Article contentUnder McDonald, Lululemon entered new categories like sneakers — a bid to take on the likes of Nike Inc. and Adidas AG. It also expanded its size ranges and entered an agreement with Fanatics Inc. and the National Hockey League to create fan apparel.Article contentBloomberg.comArticle 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 Lululemon CEO to leave after slowdown as shares gain on outlook Retail & Marketing U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth 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 Lululemon CEO to leave after slowdown as shares gain on outlook Retail & Marketing U.S. trade deficit unexpectedly shrinks to smallest since 2020 Economy Canadian households boost their wealth to another record high of $18.4 trillion with ‘supercharged' financial asset growth Wealth