Lululemon CEO Resigns Amid Q3 Profit Decline and Sales Increase

Lululemon Athletica Inc. has announced significant changes amid its third-quarter earnings report. The Vancouver-based athletic apparel company reported a decline in net income, alongside an increase in revenue.

Lululemon Reports Q3 Earnings

For the third quarter, Lululemon’s net income stood at US$306.8 million. This figure reflects a decrease from US$351.9 million reported in the same quarter last year.

Earnings Per Share Decline

The company’s earnings per diluted share dropped to US$2.59, down from US$2.87 in the prior-year quarter. This decline highlights the challenges facing the company despite rising sales.

Revenue Growth

In contrast to the income decline, Lululemon’s revenue increased to US$2.6 billion. This marks a 7% rise compared to US$2.4 billion during the same period last year.

Stock Repurchase Program

• The board of directors approved a US$1 billion increase to its stock repurchase program.
• This move indicates strong confidence in Lululemon’s market position despite current financial challenges.

Leadership Changes

In a significant managerial shift, CEO Calvin McDonald will resign effective January 31. The company is now seeking a new leader.

Interim Leadership

During this transitional period, CFO Meghan Frank and COO André Maestrini will act as interim co-CEOs. Their experience will be crucial as Lululemon navigates these changes.

As Lululemon heads into the new fiscal year, it faces the dual challenge of improving profitability while maintaining growth in sales.