Lululemon Athletica announced that its CEO, Calvin McDonald, will be departing the company in January without a successor in place. Despite this news, the company raised its yearly profit forecast, leading to a surge of around 10% in its stock price during after-hours trading on Thursday.
McDonald, a Canadian alum of the University of Toronto and Western University, is stepping down after approximately seven years as the company’s leader. Prior to his tenure at Lululemon, he held executive roles at Sephora Americas and Sears Canada.
Following McDonald’s departure, Lululemon has appointed its current CFO, Meghan Frank, and CCO, André Maestrini, as interim co-CEOs while they seek a permanent replacement. The company’s board is actively searching for a new CEO to take over McDonald’s responsibilities.
In light of recent struggles with sales performance and product execution in the U.S., Lululemon is making strategic changes at the executive level to address market challenges and appeal to a younger, more discerning consumer base. Additionally, the company has authorized a $1 billion increase in its stock buyback program.
Despite a revised annual profit outlook and heightened market volatility, analysts remain cautiously optimistic about the brand’s future prospects. Lululemon’s upcoming initiatives include increased marketing investments, elevated discount offerings to clear out excess inventory, and participation in the Milano Cortina 2026 Olympic and Paralympic Winter Games by showcasing Team Canada’s athletic apparel designed by the company.