Lululemon CEO Calvin McDonald plans to step down after helping triple the company’s yearly revenue during his time at the helm. The timing of his exit raises eyebrows as the athletic apparel retailer faces tough times, with its shares dropping almost 50% in the last year.
McDonald’s leadership brought impressive wins. He pushed Lululemon into more than 30 markets worldwide and turned China into the company’s second-biggest market. Recent results paint a mixed picture though. The latest quarter showed a 7% bump in revenue to $2.6 billion, but profits fell by 13%. The company’s international business stayed strong with a 33% revenue jump, which stands in stark contrast to a 2% drop in the Americas.
Lululemon’s board has started working with a top executive search firm to find their next CEO. McDonald will stick around as a senior advisor until March 31, 2026. The premium athleisure brand now faces growing hurdles, including rising tariff costs and tough competition from brands like Alo Yoga. This complete profile looks at why he’s leaving, what he achieved, and what comes next for Lululemon.
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The Announcement That Shocked the Industry
Lululemon Athletica’s athletic apparel market faced a major upheaval on December 11, 2025. The company announced Calvin McDonald would step down as Chief Executive Officer and board member on January 31, 2026. This news came alongside Lululemon’s third-quarter earnings report, which sent shockwaves through the retail sector.
When and why Calvin McDonald is stepping down
McDonald led Lululemon through seven years of change since 2018. His exit seems to be a mutual decision between him and the company. “In my conversations with the board, we carefully considered what’s ahead for the company and for my own trip. Together we agreed that the timing is right for a change as we near the end of our five-year plan cycle,” McDonald said during the earnings call.
The announcement comes at a tough time for the athletic wear giant. McDonald admitted Lululemon’s products had “become too predictable” and loyal customers felt “fatigue” from seeing the same styles too long. The company’s North American markets didn’t perform well, with U.S. revenue falling 3% and Canadian sales dropping 1% in the third quarter.
McDonald will stay on as a senior advisor until March 31, 2026. This will help smooth the transition while the search for his replacement continues.
Who will lead Lululemon during the transition
The company has put together a detailed leadership transition plan. Board Chair Marti Morfitt will now serve as Executive Chair to keep the company’s growth strategy on track. The company also named two interim co-CEOs – Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini – who will run operations after McDonald leaves.
These interim leaders bring “extensive global retail experience and proven track records of driving growth at lululemon,” the company stated officially. Lululemon’s board has started a “detailed search process” with a top executive search firm to find the next permanent CEO.
Initial market and media reactions
Investors reacted well to McDonald’s departure news. Lululemon’s shares jumped about 10% in after-hours trading. This momentum carried forward, with shares climbing 9.6% the next day. The stock reached its highest point since September 4.
Market analysts had different views on this leadership change. Jefferies analyst Randal Konik upgraded Lululemon stock from “underperform” to “hold.” He said “the board’s decision to move on is overdue and, in our view, the most constructive development for shareholders in years”. Neil Saunders from GlobalData noted that while “the results themselves do not warrant a resignation, the somewhat muddled strategy has caused a lot of noise”.
Lululemon’s founder Chip Wilson seemed pleased with the change. He had recently published a full-page ad in The Wall Street Journal titled “Lululemon: in a Nosedive”. Reports suggest he was ready to start a proxy fight before the announcement to gain more control over the brand he started in 1998.
Who Is Calvin McDonald? A Look at His Journey
Calvin McDonald was born and educated in Canada. He built an impressive retail career before becoming the lululemon CEO in 2018. His retail experience gave an explanation about the leadership style that ended up revolutionizing the athletic apparel giant.
Early career and rise in retail
McDonald spent 17 years at Loblaw Companies Limited, Canada’s largest retailer. He climbed through various management roles and ended up leading a massive business unit. His team had about 40,000 employees and was responsible for USD 15 billion in annual revenue. At Loblaw, McDonald expanded the President’s Choice private label brand by a lot.
He then served as President and CEO of Sears Canada from 2011 to 2013. The publicly-traded retailer saw positive retail comparable sales for the first time in five years under his leadership.
McDonald’s career soared during his five-year role as President and CEO of Sephora Americas from 2013 to 2018. Sephora became the market leader in North and South America with consistent double-digit growth each year under his watch. His key strategies at Sephora included:
- Expanding product offerings
- Creating innovative digital and mobile platforms
- Building unique in-store customer experiences that grew a loyalty program to over 25 million members
- Launching a home subscription model
- Taking the brand into new global markets like Brazil and Mexico
His leadership was so effective that Sephora’s employees ranked him among the top 50 CEOs to work for on Glassdoor.com from 2015 to 2017.
Joining Lululemon in 2018
Lululemon announced McDonald as their new CEO in July 2018, with his role starting August 20, 2018. He stepped in after Laurent Potdevin’s sudden departure in February when the company said he “fell short” of its standards of conduct. McDonald’s compensation package as CEO of lululemon included a base salary of USD 1.25 million, a yearly target performance bonus of 150% of base salary, and USD 6 million in equity rewards.
Lululemon’s Board Chairman Glenn Murphy saw McDonald as “the ideal match for the lululemon brand and culture given his strong consumer mindset, performance-driven approach, and success developing people”. McDonald shared his excitement about joining lululemon “at an exciting time, with the brand’s strong business momentum, guest loyalty and passionate employees”.
Vision and leadership style
McDonald brings a unique view to his role as lululemon CEO as an endurance athlete who races in ironman distance triathlons and marathons. His leadership style balances performance with wellbeing.
“I’m an A-type who likes to win. But if anything, one of the things the Ironman teaches me is humility, in terms of effort and performance, and redefining what success looks like,” McDonald has stated. This mindset shapes his business approach: “I like to win, but I always say how I win matters. And I want to win through others”.
McDonald sees himself as a brand builder driven by curiosity. He values open discussions and debate. “I want to hear from everybody around the table that has an opinion”. Beyond focusing on innovation, he works to understand what helps separate the brand in the marketplace.
Culture sits at the heart of McDonald’s leadership approach. “I believe any leader affects an organization based on the effect you can have on the broader culture,” he explains. This cultural focus extends to his dedication to wellbeing – physical, social, and mental – for both customers and employees.
Achievements That Defined His Tenure
Calvin McDonald turned Lululemon from a yoga-focused brand into a global athletic apparel powerhouse. His seven-year journey as lululemon CEO brought extraordinary growth that changed the company’s market position completely.
Revenue growth and global expansion
The CEO of lululemon achieved remarkable financial results. McDonald joined in 2018 and led the company to triple its annual revenue. The company expects to generate USD 11 billion this fiscal year, up from USD 3.3 billion when he started.
His “Power of Three ×2” growth strategy set clear goals to double the company’s 2021 revenue of USD 6.25 billion to USD 12.5 billion by 2026. The company will reach its 2023 revenue targets earlier than planned.
McDonald expanded Lululemon beyond borders. The brand now operates in more than 30 countries and China Mainland has become its second-largest market. The company’s international business grew four times larger and opened its first store in Milan, Italy. McDonald believed in global potential, saying “There’s no reason that 50 percent of our sales can’t be international”.
Product diversification: from yoga to golf
The lululemon CEO expanded the product line well beyond yoga. The company grew its athletic and lifestyle categories and added new sports like tennis and golf. This move changed Lululemon from a “yoga brand for ‘her'” into a powerhouse that serves both men and women.
Men’s products became a key focus under McDonald. This segment now makes up 25% of Lululemon’s U.S. sales. His strategy aimed to double the men’s business while staying America’s #1 women’s activewear brand. The company also launched footwear designed specifically for women’s feet.
Lululemon made strong moves in golf by signing LPGA pro Lydia Ko and former NBA player J.R. Smith as endorsers. This helped the brand compete in the premium golf apparel market.
Digital transformation and customer experience
McDonald’s focus on digital growth proved crucial. The CEO of lululemon doubled digital sales, and direct-to-consumer revenue grew more than twice during the pandemic. Online sales jumped 150% in Q2 of the fiscal year, making up 61.4% of total revenue.
He put money into better digital systems and e-commerce platforms. The company bought home fitness startup Mirror for USD 500 million. The brand also started using data and AI to improve customer experience. This created a smooth shopping experience that connected physical stores with online shopping.
The Real Reasons Behind His Exit
The lululemon CEO’s departure came after several problems that led to a nearly 50% drop in stock value over the year. These numbers tell only part of the story about what was happening behind the scenes.
Internal challenges and leadership fatigue
McDonald found himself in a tough spot after admitting Lululemon’s products had “become too predictable” and loyal customers showed clear signs of “fatigue”. The CEO of lululemon acknowledged in September 2025 that they kept certain styles in the lineup for too long. Their core customers weren’t excited anymore.
Their product lineup turned stale. McDonald pointed out that Lululemon’s lounge and social offerings had “run too long” and became “stale” to their best customers. This made it hard to get “high-value guests” to visit more often and spend more. Their most loyal customers started looking elsewhere.
Quality started slipping too. This hurt the brand’s premium image that helped justify their higher prices. The leadership style that helped triple revenue wasn’t working anymore.
External pressures: competition and market shifts
New challenges emerged from outside the company. Brands like Vuori and Alo Yoga started gaining ground. These competitors used influencer marketing and better-fitting products to attract younger shoppers.
Fashion trends changed rapidly. The lululemon CEO watched as their flagship product lost its appeal—leggings were “falling out of favor among young consumers.” Gen Z women preferred “looser, relaxed silhouettes like parachute pants, joggers and baggy workout bottoms”.
The economy didn’t help either. Trump’s tariffs and changes to the de minimis exemption hit hard. These changes meant packages worth USD 800 or less couldn’t enter the U.S. duty-free anymore, cutting their 2025 profits by about USD 210 million.
Founder Chip Wilson’s public criticism
Founder Chip Wilson’s public attacks hurt the company badly. He bought a full-page ad in The Wall Street Journal titled “Lululemon: in a Nosedive”. Wilson claimed the company had “lost its edge”.
Wilson took aim at McDonald’s USD 500 million Mirror purchase. He said this move “ultimately squandered USD 1 billion and erased USD 10 billion in market capitalization”. His harsh words targeted the board for picking “operator/finance CEOs who can ‘speak Wall Street'” instead of product-focused leaders.
After McDonald stepped down, Wilson claimed victory. He said that “only under my increasing pressure has the lululemon Board of Directors finally started to listen”.
What’s Next for Lululemon and Its Leadership
Lululemon stands at a turning point in its journey. The board has already set a detailed plan to find its next generation of leaders. The company must make vital decisions that will determine its path in a market that grows more competitive each day.
The CEO search process and criteria
The board at Lululemon has brought in a top executive search firm to find McDonald’s replacement. They aim to find the perfect candidate who can direct the company into its next chapter. The new leader must tackle recent issues while keeping the brand’s high-end status in athletic wear.
Role of interim co-CEOs and executive chair
Board Chair Marti Morfitt now serves as Executive Chair with immediate effect. The leadership team includes Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini as interim co-CEOs. This three-person team will direct the lululemon CEO transition and keep operations running smoothly.
Strategic priorities for 2026 and beyond
The next CEO of lululemon faces several key challenges ahead. The company needs to refresh its product breakthroughs to deal with the “staleness” McDonald mentioned. On top of that, the new leader must guide the company through fierce competition from brands like Alo Yoga. They need to expand globally while strengthening North American results. The most pressing task remains rebuilding investor trust after the stock dropped nearly 50% during McDonald’s final year.
Calvin McDonald’s exit closes a remarkable chapter at Lululemon. His seven-year leadership saw the company’s revenue triple while expanding to more than 30 countries. His vision turned Lululemon from a yoga-focused brand into a global athletic powerhouse that now offers products across many categories.
The leadership change stems from several challenges. Stale products and falling North American sales hurt the company’s market position. Growing competition from brands like Alo Yoga added more pressure. The situation became more complex when founder Chip Wilson took out full-page ads to claim the company had “lost its edge.”
Investors welcomed the news of McDonald’s departure as shares jumped 9.6% after the announcement. The market believes new leadership could better handle Lululemon’s current challenges. McDonald achieved his “Power of Three ×2” growth strategy ahead of schedule, but the brand needs fresh ideas to win back high-value customers who found recent products too predictable.
Lululemon must make crucial decisions soon. The temporary leadership team of Executive Chair Marti Morfitt and co-CEOs Meghan Frank and André Maestrini needs to steady the ship while the board looks for a permanent CEO. The new leader must keep the international growth going while breathing new life into North American markets.
McDonald leaves behind a mixed legacy of remarkable growth and recent setbacks. The premium athleisure brand now stands at a turning point. It needs to rediscover its creative spark while keeping its premium status against smarter competitors. The next CEO will inherit both McDonald’s impressive global network and the major challenges that led to his sudden departure.
Here are some FAQs about who is the ceo of Lululemon:
Who is the new CEO of Lululemon?
The new CEO of Lululemon has not changed recently; the current and long-standing chief executive is Calvin McDonald. He was appointed to the role of lululemon ceo in 2018 and has been leading the company since. When asking who is the CEO of lululemon, the correct answer remains Calvin McDonald.
What happened to Lululemon CEO?
There was a notable lululemon ceo scandal involving a previous CEO, Laurent Potdevin, who resigned in 2018 due to conduct that did not align with the company’s standards. This event is a historical part of the brand’s leadership story, separate from the current ceo of lululemon. The current leadership under Calvin McDonald has been focused on moving the brand forward from that period.
Why is Calvin McDonald leaving Lululemon?
Calvin McDonald is not leaving Lululemon; he remains actively in his role as the ceo lululemon. There have been no official announcements or indications from the company regarding his departure. Any speculation about him leaving appears to be unfounded rumor at this time.
How much does the Lululemon CEO make?
The compensation for the lululemon ceo is substantial, typically consisting of a base salary, stock awards, and performance bonuses. In a recent fiscal year, Calvin McDonald’s total reported compensation was valued in the tens of millions of dollars. This pay package reflects the company’s performance and the board’s valuation of his leadership.
Is Chip Wilson still owner of Lululemon?
Chip Wilson, the founder, is not the majority owner but remains a significant shareholder in Lululemon. He stepped down from the company’s board several years ago and is no longer involved in its daily operations. His relationship with the company and the current ceo of lululemon has been complex and at times publicly contentious.
Who is Celeste Burgoyne?
Celeste Burgoyne is a key executive at Lululemon, serving as the President of the Americas and Global Guest Innovation. She plays a crucial role in driving the company’s retail strategy and North American growth under the direction of the lululemon ceo. Her leadership is focused on enhancing the guest experience and expanding the brand’s community.
Why is Lululemon struggling?
Any reports of Lululemon struggling are often overstated, though the company faces normal business challenges like increased competition and market saturation. The lululemon ceo comments on earnings calls typically address these pressures while highlighting areas of continued growth, such as international expansion and new product categories. The brand remains a dominant and profitable force in the athleisure market.