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Lululemon Launches CEO Search as Calvin McDonald Plans January Exit

Shares rallied following interim appointments and a larger buyback authorization.

Overview

  • McDonald will step down as CEO on Jan. 31, 2026, leave the board, and remain a senior adviser through March 31.
  • Board chair Marti Morfitt becomes executive chair, with CFO Meghan Frank and CCO André Maestrini named interim co‑CEOs as a leading firm assists the search.
  • Lululemon reported Q3 revenue of $2.57 billion, beating estimates, as Americas revenue fell 2% and international sales rose 33% while quarterly profit declined 13%.
  • The company lifted buybacks by $1 billion and guided holiday-quarter revenue to $3.50–$3.59 billion, citing higher promotions and increased marketing.
  • Management flagged about $210 million in tariff‑related profit headwinds and ongoing U.S. softness, as founder Chip Wilson escalated criticism and weighed board changes, according to reports.