Shares of Lululemon Athletica (LULU) are up 10% after the Canadian retailer announced that current Chief Executive Officer (CEO) Calvin McDonald is stepping down.
McDonald will leave the athletic apparel company on Jan. 31, 2026, after more than a year of underperformance for Lululemon and its stock.
The Vancouver-based company said that its board of directors is working with an executive search firm to identify the next CEO.
In the meantime, Lululemon’s Chief Financial Officer (CFO) Meghan Frank and Chief Commercial Officer (COO) André Maestrini will serve as interim co-CEOs.
The company’s board chair Marti Morfitt is taking on the expanded role of executive chair.
The leadership change comes amid criticism from company founder and largest independent shareholder Chip Wilson.
Two months ago, Wilson took out a full-page advertisement in The Wall Street Journal newspaper saying Lululemon is “in a nosedive.”
Lululemon Athletica’s business has been under pressure over the past year as it navigates the impact of tariffs, a pullback in consumer spending, and new products that have fallen flat.
Somewhat ironically, Lululemon announced McDonald’s departure as CEO on the same day it posted strong fiscal third-quarter financial results.
The company reported earnings per share (EPS) of $2.59 U.S., which was ahead of the $2.25 U.S. expected on Wall Street.
Revenue in the period totaled $2.57 billion U.S., which topped forecasts of $2.48 billion U.S.
Prior to today (Dec. 12), LULU stock had declined 50% this year to trade at $187.01 U.S. per share.
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