What is lululemon’s Succession Plan After its CEO Departs?

lululemon athletica inc. has announced that Calvin McDonald will step down as CEO and Member of the Company’s Board of Directors, effective 31 January.

Calvin will be working with the Board to facilitate a smooth transition by serving as a Senior Advisor to the company up to 31 March 2026.

lululemon says it has not yet found its next leader but is undergoing a “comprehensive search process” to find his replacement.

Discussing his departure on LinkedIn, Calvin says: “After more than seven amazing years, I will step down from my role as CEO of lululemon on January 31.

“This decision was something that I, along with the Board, have been discussing and carefully considered. As we near the end of our five-year strategy, and with our strong senior leadership team in place, we all agree that now is the time for the change.”

To further ensure a smooth transition, lululemon says that Chair of the Board Marti Morfitt will take on the expanded role of Executive Chair to ensure “continued execution of the company’s near and long-term growth strategy”.

Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs from January.

Inside Calvin’s tenure

Calvin added that since he joined the company in 2018, it has seen significant growth: “We have quadrupled our international business and tripled our total revenue to more than US$10bn, while increasing our profitability.

“We’ve driven industry leading omnichannel guest experiences, have become the #1 women’s activewear apparel brand in the US, and created significant growth in our men’s business.”

The athleisure brand says that he has also broadened its global reach to over 30 geographies and grew the company’s China Mainland business into its second largest market.

It also credits the CEO for expanding lululemon into high-demand activities, including tennis and golf.

“On behalf of the Board and the entire organisation,” Marti said, “I want to thank Calvin for his visionary leadership building lululemon into one of the strongest brands in retail.

“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.”

Tariff pressures

The popular brand has had a mixed 2025. At the time of lululemon’s Q2 report in September, the company expected net revenue in the range of US$10.85bn to US$11bn, down from a first quarter prediction of US$11.3bn.

The now interim co-CEO designate Meghan said: “In the second quarter, we exceeded expectations on EPS, but revenue fell short of our guidance, driven predominantly by our US business.

“We are also navigating industry-wide challenges, including higher tariffs rates. In the light of these dynamics, we are revising our full-year outlook.

“As we begin the back half of the year, our brand and balance sheet remain strong, and we will continue to exercise financial discipline and strategically invest in our growth potential.”

The reason behind this vulnerability in particular was President Donald Trump’s tariffs. While lululemon operates across 25 countries, three-quarters of its revenue comes from the Americas.

Forty percent of its products in 2024 were made in Vietnam and almost 30% of its fabrics were from mainland China, both nations that were hit by the tariff hikes.

For the third quarter of 2025, announced by the firm on 11 December, compared to the third quarter of 2024: net revenue increased 7% to US$2.6bn. Americas net revenue decreased 2%, whereas international net revenue increased 33%.

Despite the continued net revenue decrease in the Americas, Marti said: “The Board is confident in our leadership transition plan, the strength of our teams across the company, and our ability to deliver on strategy.”