Dive Brief:
- Lululemon CEO Calvin McDonald is stepping down at the end of January, the activewear giant said Thursday. The news comes amid a slowdown in North America, Lululemon’s biggest region.
- The retailer’s board is conducting a “comprehensive search” for a new chief executive, in combination with an executive search firm. McDonald will stay on as an adviser through March of next year and support the board through the transition.
- CFO Meghan Frank and Chief Commercial Officer André Maestrini will become interim co-CEOs after McDonald’s departure. Board chair Marti Morfitt is taking on an expanded role as executive chair, effective immediately, to help with strategy execution.
Dive Insight:
Lululemon is moving on from McDonald, who led the company through a period of enormous growth, as the brand struggles to maintain relevance with shoppers and witnesses falling demand in its biggest region.
The company, which reported earnings on Thursday, saw revenue grow 7% to $2.6 billion, but sales in the Americas declined 2% in the period. Comps increased 1% overall but were down 5% in the Americas.
“On behalf of the Board and the entire organization, I want to thank Calvin for his visionary leadership building lululemon into one of the strongest brands in retail,” Morfitt said in a statement. “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. We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition.”
Editor’s note: This story is developing and will be updated.
