Lululemon CEO Calvin McDonald to Step Down: A Leadership Transition Amidst Market Challenges
Published: December 12, 2025
In a strategic move, Lululemon Athletica Inc. announced on Thursday that CEO Calvin McDonald will be stepping down early next year, marking a significant leadership transition for the brand. McDonald's departure is set for January 31, 2026, after which he will serve as a senior advisor until March 31, 2026. This announcement comes as Lululemon faces intense competition in the highly competitive athleisure sector, particularly in the U.S. market.
The company's board of directors has appointed Meghan Frank, Lululemon's Chief Financial Officer, and André Maestrini, Chief Commercial Officer, as interim co-CEOs. Frank and Maestrini bring a wealth of global retail experience and a proven track record of driving growth at Lululemon. They will oversee all aspects of the business during the search for McDonald's replacement, ensuring a smooth transition and continued execution of the company's growth strategy.
Lululemon, a pioneer in athleisure clothing, has been facing challenges in maintaining its market position. Over the past year, the company's stock has experienced a significant decline, falling nearly 50%. Despite this, McDonald expressed optimism in the latest quarterly earnings report, highlighting the team's focus on improving the U.S. business and maintaining momentum in international regions. He noted that the company is making progress against its action plan and expects to see positive outcomes in 2026, particularly during the holiday season.
In the latest quarter, Lululemon's revenue trends showed a mixed performance. While international revenue surged by 33%, revenue in the Americas declined by 2%. Sales at stores open for at least a year increased by 1%, but this growth was offset by a 5% decline in sales at stores in the Americas. These figures indicate the brand's ongoing struggle to maintain its competitive edge, especially in the domestic market.
As Lululemon navigates this leadership transition, the appointment of Marti Morfitt as Board Chair and Executive Chair is a strategic move to ensure the company's long-term growth strategy remains on track. This decision reflects the board's commitment to stability and continued execution of the company's vision during a period of change.
The upcoming months will be crucial for Lululemon as it embarks on a journey of transformation, with the new leadership team guiding the brand towards a brighter future in the highly competitive athleisure industry.
