Lululemon’s chief executive to step down as slowdown bites

CANADA: Lululemon is changing its top runner mid-race. Calvin McDonald will step down as chief executive by January 31, 2026, as the athleisure giant grapples with slowing sales and mounting investor pressure. Markets liked the move. Shares surged more than 10 per cent in post-market trading in New York.

The Vancouver-based company said it has launched a global search for its next chief, working with an executive search firm. In the interim, cfo Meghan Frank and chief commercial officer André Maestrini will serve as interim co-ceos, while board chair Marti Morfitt takes on an expanded role as executive chair.

The announcement landed alongside Lululemon’s third-quarter results, which underscored the challenge ahead. Net revenue in the Americas slipped 2 per cent, while international sales jumped 33 per cent, highlighting both strain at home and promise abroad.

McDonald, who has led Lululemon since 2018, said the role had been the highlight of his career and pledged to support the transition in an advisory capacity. His seven-year tenure delivered a 37 per cent rise in the company’s shares, though that lagged far behind the S&P 500’s 142 per cent gain over the same period. By Thursday’s close, Lululemon stock had fallen more than 50 per cent from its peak.

Pressure has been building. Chip Wilson, the billionaire founder and major shareholder, has openly pushed for board-level changes and a sharper focus on product innovation, adding urgency to the leadership reset.

Born and raised in Canada, McDonald joined Lululemon after leading Sephora Americas and Sears Canada, following a 17-year career at Loblaw Companies. He holds an mba from the University of Toronto and a science degree from the University of Western Ontario.

For now, investors are cheering the shake-up. But the real test lies ahead. A new leader will need to reignite growth, steady the core market and keep the brand stretching – without losing its balance.