Calvin McDonald, CEO, Lululemon, plans to step down, the company announced yesterday.
While the board is conducting a search process to identify the company’s next CEO, the exiting manager will serve as a senior advisor to the company through March 31, 2026.
They also announced that Marti Morfitt, chair of the board, will take on the expanded role of executive chair, effective immediately, to ensure the continued execution of the company’s near- and long-term growth strategy during the leadership transition.
In the meantime, Meghan Frank, chief financial officer, and André Maestrini, chief commercial officer, will serve as interim co-CEOs following McDonald’s transition.
McDonald has guided the company since 2018 through a period of significant growth and innovation. Under his leadership, Lululemon has more than tripled its annual revenues, and the company expects to generate US$11 billion in annual revenue this fiscal year.
He also broadened Lululemon’s global reach to over 30 geographies and grew the company’s China Mainland business into its second largest market.
Additionally, he expanded Lululemon’s product portfolio, growing its athletic and lifestyle categories, and expanding into new high-demand activities such as tennis and golf.
“Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years,” said McDonald.
“Together, we have transformed the athletic apparel industry and the opportunity ahead for Lululemon is substantial. I believe the outstanding product pipeline we’ve built, and action plan we’ve put into place, will yield positive results, and deliver value to shareholders in the future,” he continued.
“I want to thank Calvin for his visionary leadership building lululemon into one of the strongest brands in retail,” Marti Morfitt said.
“During his tenure, Calvin led Lululemon through a period of impressive revenue growth, with differentiated products and experiences that resonated with guests around the world. We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition,” he added, while US press said that McDonald will receieve US$3.05 million as part of a separation agreement, as well as $2.1 million in severance payments and a bonus for fiscal 2025.
“Lululemon has a strong foundation in place, and, as we look to the future, the board is focused on identifying a leader with a track record of driving companies through periods of growth and transformation to guide the company’s next chapter of success.”
The company has also delivered its third quarter fiscal 2025 results that saw a 7% revenue growth to US$2.6 billion, despite sales in the Americas lost 2%, while cmparable sales increased 1%, or 2% on a constant dollar basis, though Americas comparable sales decreased 5%. Differently, international comparable sales increased 18%.
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