Lululemon Athletica confirmed on Dec. 11 that Calvin McDonald will step down as Chief Executive Officer after leading the company since 2018. McDonald will remain as an adviser through March to support the transition.
The board has named Meghan Frank, Chief Financial Officer, and André Maestrini, Chief Commercial Officer, as interim co-CEOs. Board Chair Marti Morfitt assumes an expanded role as Executive Chair to oversee strategy execution during the leadership change.
The announcement coincides with Lululemon’s latest earnings report: revenue rose 7 percent to $2.6 billion (€2.5bn), but sales in the Americas – its largest region – fell 2 percent, with comparable sales down 5 percent in that market. Global comps increased 1 percent overall. Analysts note that while the brand remains profitable, its expansion strategy faces headwinds from changing shopping habits, macroeconomic pressures and higher costs linked to President Donald Trump’s tariffs. Also, rivals such as Alo Yoga are on the rise, challenging Lululemon’s market share in the premium athleisure segment.
McDonald, who has helped triple Lululemon’s annual revenues and expand internationally, described his tenure as “the highlight of my career” and expressed confidence in the company’s product pipeline and growth strategy.
As part of his separation agreement, McDonald will receive $3.05 million (€2.9m) plus $2.1 million (€2m) in severance and a fiscal 2025 bonus. Interim leaders Frank and Maestrini will receive retention bonuses and equity awards valued at $4 million (€3.8m) each, to reflect their expanded responsibilities.
The board has engaged an executive search firm to identify a permanent CEO as Lululemon works to regain momentum in North America and strengthen its global positioning.
