On Thursday Lululemon said that its Chief Executive Officer Calvin McDonald will leave his role on January 31, 2026, after seven years at the helm. He will remain as senior adviser through March 31 to facilitate the transition. The board has begun a search process with a specialized firm to identify his successor. The move follows a challenging year for the brand, marked by what were seen as disappointing performances in its main market.
Under McDonald, Lululemon broadened its range beyond athletic apparel, introducing footwear, jackets and pieces suited to everyday use. The company also pursued international expansion to offset slowing sales in North America, amid a more uncertain economic environment, intensifying competition in athleisure and a product offering sometimes viewed as less innovative.
The brand was also hit by the elimination of the de minimis exemption, which had previously allowed small parcels to enter the United States duty-free. This regulatory shift could reduce annual profits by $240m. Despite this backdrop, Lululemon shares rose more than 7% after the announcement of McDonald's departure, reflecting investors' renewed confidence in a possible strategic reset.
