Lululemon CEO Resigns, Effective January
Lululemon Athletica Inc. has announced the resignation of its CEO, Calvin McDonald, effective January 31, 2026. McDonald has been leading the Vancouver-based company since 2018, overseeing significant revenue growth but facing challenges recently.
Lululemon’s Leadership Changes
Calvin McDonald will step down as CEO after nearly eight years in the role. His leadership coincided with the company’s revenue increasing more than threefold, with expected sales of approximately US$11 billion for the current year. However, the company’s stock has plunged over 50% this year, concerning investors.
Interim Leadership and Future Directions
Following McDonald’s departure, Lululemon plans to appoint an interim leadership team comprising Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini. They will serve as co-CEOs until a new CEO is officially appointed.
- Current CEO: Calvin McDonald
- Effective Resignation Date: January 31, 2026
- Interim Co-CEOs: Meghan Frank and André Maestrini
- Company Headquarters: Vancouver, Canada
- 2023 Estimated Sales: US$11 billion
- Stock Price Decline: Over 50% in 2023
Challenges and Market Competition
Despite Lululemon’s previous dominance in the athleisure market, the brand has recently experienced a decline in customer loyalty. Competitors like Alo Yoga and Vuori have attracted consumers seeking more innovative designs. McDonald acknowledged that Lululemon’s offerings had become “too predictable,” leading to a noticeable fatigue among loyal customers.
The economic environment has also impacted sales of premium athleisure wear. Items like the $100 leggings are now harder to sell as consumers are more cautious with their spending.
Future CEO and Vision
In the official announcement, McDonald referred to his tenure at Lululemon as “the highlight of my career.” He expressed his commitment to ensuring a smooth transition for the company. The board’s focus will be on finding a new CEO with a proven history of guiding companies through growth and transformation.
As Lululemon navigates through this period of change, the company aims to revitalize its brand and regain its competitive edge in the athleisure market.
