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Lululemon Athletica Inc. announced Thursday that CEO Calvin McDonald will step down early next year as the brand struggles to compete in a highly competitive industry.
McDonald will step down on January 31, 2026, but will continue to serve as the company’s senior advisor until March 31. Lululemon CFO Meghan Frank and chief commercial officer André Maestrini will serve as interim co-CEOs while the board searches for a replacement for McDonald’s.
The company said Frank and Maestrini have “extensive global retail experience and a proven track record of growing lululemon.” Both will support all aspects of the business until the conclusion of the search process.
A Lululemon store in a shopping center. (Zhang Peng/LightRocket via Getty Images)
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Board Chair Marti Morfitt is also taking on the expanded role of executive chairman “to ensure continued execution of the company’s short- and long-term growth strategy during the leadership transition,” according to Lululemon.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| LULU | LULULEMON ATHLETICA INC. | 205.90 | +18.89 |
+10.10% |
Lululemon was known for putting sportswear on the map, but today it struggles to compete with competitors, particularly in the United States. In the last 12 months alone, Lululemon stock has fallen nearly 50%.
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McDonald said in the company’s latest quarterly earnings report that its teams remain focused on improving its U.S. business and maintaining momentum in international regions.
Lululemon signage is seen in a department store in New York. (Michael M. Santiago/Getty Images)
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“We are starting to make progress against our action plan and continue to expect to see the impact of this work in 2026,” he said, adding that the company was encouraged by its early performance over the holiday period.
An employee moves a mannequin displaying a pair of leggings at Lululemon Athletica Inc. (Simon Dawson/Bloomberg via Getty Images)
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During the last quarter, revenue in the Americas region fell by 2%, while international revenue increased sharply by 33%. Sales at stores open at least a year increased 1%, or 2% when adjusted for constant currency. On the other hand, sales of stores open for at least a year on the American continent fell by 5%.
