Lululemon Athletica Inc. announced Thursday that CEO Calvin McDonald is stepping down early next year as the brand struggles to compete in the highly competitive sector.
McDonald will step down on Jan. 31, 2026, but will continue to serve as a senior advisor to the company through March 31. Lululemon Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs as the board of directors looks for McDonald's replacement.
The company said Frank and Maestrini have "extensive global retail experience and proven track records of driving growth at lululemon." Both will support all aspects of the business through the conclusion of the search process.
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Board Chair Marti Morfitt is also taking on the expanded role of executive chair "to ensure the continued execution of the company’s near- and long-term growth strategy during the leadership transition," according to Lululemon.
Lululemon was known for putting athleisure clothing on the map, but today it's been struggling to compete against rivals, especially in the U.S. Over the last 12 months alone, Lululemon’s stock has fallen nearly 50%.
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McDonald said in the company's latest quarterly earnings report that its teams remained focused on driving improvements within its U.S. business and maintaining momentum in international regions.
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"We are beginning 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 has been encouraged by its early performance during the holiday season.
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In its latest quarter, revenue in the Americas fell by 2%, while international revenue rose sharply by 33%. Sales at stores open for at least a year increased 1%, or 2% when adjusted for constant currency. However, sales at stores open for at least a year in the Americas declined by 5%.
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