Leisure and sportswear-maker Lululemon Athletica will start the year searching for a new chief executive, as CEO Calvin McDonald announced his departure during the company’s third-quarter earnings call in early December.
McDonald steps down as CEO and board member effective January 31, but he will remain as a senior adviser through the end of the first quarter to ensure a smooth transition. In the interim, CFO Meghan Frank and Chief Commercial Officer André Maestrini will share leadership duties as co-CEOs. Frank will oversee product merchandising and design as well as brand while Maestrini looks after the company’s global markets.
Since joining Lululemon in 2018, McDonald has more than tripled the company’s revenue, which is expected to reach $11 billion at the end of 2025. He also broadened its global footprint to 30 markets and significantly expanded its product portfolio.
“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,” board chair Marti Morfitt said in a prepared statement. “We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition.”
Nevertheless, McDonald and Lululemon faced significant headwinds throughout 2025. As of the end of the third quarter, the company’s US revenue was down 3%. Revenue for the Canadian market remained flat while mainland China’s and rest-of-the-world revenues were up 45% and 19%, respectively. It would be fair to conclude that “the negatives will outweigh the positives” for operating margin in 2026, Frank noted, citing a full year of tariffs and Washington’s elimination of the de minimis provision.
McDonald’s announcement came approximately two months after Lululemon founder Chip Wilson, who stepped down as board chair in 2013 and departed the board in 2015, ran a full-page ad in The Wall Street Journal criticizing the company’s management and direction.
“Lululemon forgot its muse: the woman who inspires culture, not just follows it,” wrote Wilson. “By drifting toward the mainstream and trying to appease everyone, Lululemon lost 50% of its market cap earned from ‘brand power.’ It lost its edge and with it, the ability to hire the best people.” Despite the criticism, McDonald noted, “Lululemon is a very different and much stronger company today than when I first joined the organization in August of 2018. I enjoy helping organizations set big, ambitious goals and growth targets and working towards achieving them.”
