Lululemon CEO announces departure effective January
Lululemon Athletica Inc. has announced the departure of CEO Calvin McDonald, effective January 31, 2026. McDonald has led the Vancouver-based company since 2018 and will also step away from the board of directors. He will continue as a senior adviser until March 31, 2026.
Impact of Leadership Change on Lululemon
Under McDonald’s leadership, Lululemon’s annual revenues more than tripled, reaching an estimated $11 billion this year. He played a significant role in expanding the brand into new global markets and diversifying product offerings. These included clothing lines for tennis, golf, and casual wear. However, the company’s stock price has dropped over 50% in 2023, raising concerns among investors.
Interim Leadership Team
With McDonald’s exit on the horizon, Lululemon has appointed Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as co-CEOs on an interim basis. The company has engaged an executive search firm to find McDonald’s successor.
Challenges Facing the Brand
Lululemon once thrived in the athleisure market, but recent shifts in consumer preferences have caused its brand appeal to wane. Strong competitors like Alo Yoga and Vuori are attracting customers with modern designs. McDonald acknowledged in September that the brand’s offerings had become “too predictable,” leading to customer fatigue.
Influential Voices Within the Company
Chip Wilson, Lululemon’s founder and major shareholder, has voiced criticism over the company’s recent performance. He published a full-page ad in The Wall Street Journal attacking “finance-focused CEOs” who lack an understanding of product quality. High-profile executive departures have also plagued the company, including Celeste Burgoyne, who will leave for another opportunity, and former Chief Product Officer Sun Choe, who joined Vans.
Economic Climate and Consumer Behavior
The current economic environment poses additional challenges for Lululemon. Premium pricing, such as $100 leggings, makes customers more selective in their purchasing decisions. This trend has further complicated the brand’s recovery and growth efforts.
The Future of Lululemon
McDonald described his tenure at Lululemon as “the highlight of my career” and expressed his commitment to supporting the leadership transition. The board aims to find a new CEO capable of steering the company through growth and transformation, as stated by board chair Marti Morfitt.
