Lululemon Athletica said late Thursday that Calvin McDonald will step down as chief executive on January 31, 2026. McDonald will advise through March 31, 2026 as the board runs a search with an external firm.
Board chair Marti Morfitt has moved to executive chair, effective immediately, to oversee the transition. Vancouver remains the operational base for leadership and design during the handover. The search for a new CEO is underway.
Lululemon plans an interim structure once McDonald departs. Chief financial officer Meghan Frank and chief commercial officer André Maestrini will serve as co-CEOs until a successor is named. The board says the set‑up is meant to keep day‑to‑day execution on track while strategy work continues under Morfitt.
“Serving as CEO of Lululemon has been the highlight of my career,” McDonald said, citing a strong product pipeline and a clear plan to support the next phase. McDonald said.
Morfitt thanked him for seven years of growth and brand building, saying, “We are grateful for Calvin’s numerous contributions.” Morfitt said.
Earnings, tariffs and market reaction
The leadership change arrived alongside third quarter results. Net revenue rose 7 percent to US$2.6 billion, with the Americas down 2 percent and international up 33 percent. Comparable sales, a retail metric that tracks growth at stores open at least a year, increased 1 percent.
Diluted earnings per share, or EPS, were US$2.59, and the board lifted its share repurchase authorization by an additional US$1.0 billion. Lululemon also raised full‑year 2025 guidance and estimated about US$210 million of tariff costs tied to higher U.S. import duties and the loss of the de minimis exemption, which is a waiver for low‑value shipments. These figures came in its quarterly update.
Investors reacted quickly after the close on December 11. Shares jumped about 10 percent after‑hours trading, which is trading that occurs once the main exchanges are closed. Analysts pointed to the CEO news, the guidance lift, and the larger buyback as drivers. The board also noted a comprehensive search for a leader with a growth and transformation track record.
Growth was strongest outside the Americas, while the U.S. softened, which will shape product, pricing, and inventory calls from Vancouver. Tariffs are taxes on imported goods, so any sustained duty pressure in the U.S. can influence sourcing and margin decisions that touch Canadian teams and suppliers.
Lululemon is not TSX‑listed, yet it is a Canadian‑headquartered retailer with a large design and corporate footprint at home. A stable transition, tighter product execution, and clear guidance should help steady vendor plans across this country. International growth remains bright.
Lululemon is leaning on existing leaders to keep momentum while the board searches. McDonald will remain as a senior advisor to ensure continuity through the first quarter. Morfitt’s expanded role is designed to keep longer‑term projects moving, including product and supply chain work. The next permanent CEO inherits a strong brand, but a tougher Americas market.
