Lululemon CEO Calvin McDonald to Depart Company in 2026
Lululemon is embarking on a new chapter as it navigates the increasingly competitive athleisure market, tariffs, and criticism from its founder. Calvin McDonald, the company’s CEO since 2018, will step down in January 2026, the company announced on December 11, alongside its quarterly earnings report. Photo by Max Cisotti/Dave Benett/Getty Images for lululemon.
Shares of the Canadian retailer, which have declined by 44% this year, surged over 10% following the announcement and a stronger-than-expected earnings report. Lululemon reported a 7% year-over-year increase in sales to $2.6 billion, while net income fell 13% to $307 million. According to McDonald, “The timing is right for a change,” as he will remain as an advisor until March to facilitate the transition.
Tariffs and Growth Challenges
Lululemon is facing significant challenges, including the impact of tariffs, which are expected to reduce profits by $210 million in 2025 and $320 million in 2026. The company’s growth has slowed in recent months, with sales in its largest market, the U.S., declining by 2% last quarter. In contrast, international sales jumped 33% during the same period. As the company looks to the future, the next CEO will need to execute a three-part turnaround plan focused on product creation, improving in-store and online experiences, and boosting enterprise efficiency.
McDonald’s departure comes amid renewed criticism from founder Chip Wilson, who accused the CEO and board of presiding over a “loss of cool” and compared the company’s trajectory to “a plane crash.” Wilson, who resigned as chairman in 2013, escalated his critique, stating, “I am deeply concerned about what appears to be a tremendous failure by the board to competently plan for the future and manage an effective succession process.”
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Image Source: observer.com
