Lululemon's Leadership Shake-Up Amidst Sales Struggles

Lululemon CEO Calvin McDonald will step down in January 2024 amid disappointing sales. The company is searching for a successor while its board chair takes on an expanded role. Quarterly results showed declining sales in North America. Lululemon faces challenges including tariffs, competition, and internal criticism.

Lululemon Athletica Inc announced that CEO Calvin McDonald will depart from his position at the end of January, following a challenging year marked by unsatisfactory sales figures.

The Vancouver-based athletic wear company, alongside McDonald, is ensuring a seamless transition. As a result, McDonald will remain a senior advisor until March 2026. Meanwhile, the board, led by chair Marti Morfitt, is actively searching for his successor with the help of an executive search firm. McDonald joined Lululemon as CEO in 2018.

The company's financial report for the third quarter disclosed declining revenues in North America, against improvements internationally. Additionally, Marti Morfitt will serve as executive chair, and incumbents Meghan Frank and André Maestrini will step in as interim co-CEOs. Lululemon grapples with various hurdles, from US tariffs to heightened market competition, among criticisms from co-founder Chip Wilson, impacting leadership decisions as the company's shares saw a post-announcement rise.

(With inputs from agencies.)