(The Epoch Times)—Lululemon Athletica’s CEO will step down in January after seven years at the helm of the premium workout and athleisure wear company, the Canadian brand announced Thursday.
Calvin McDonald’s departure, expected on Jan. 31, comes amid disappointing U.S. sales, increased competition, and criticism about the company’s direction.
Chief Commercial Officer André Maestrini will serve as the interim CEO while the company conducts a search for a new executive, according to Lululemon.
“Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years,” McDonald said in a statement. “Together, we have transformed the athletic apparel industry and the opportunity ahead for Lululemon is substantial.”
The brand first opened a store in Vancouver, Canada, in 2000 and its first U.S. store opened in Santa Monica, California, in 2003. Lululemon started as a design studio—which operated as a yoga studio by night—where founder Chip Wilson first developed his products.
The stylish stretchy pants, shirts, jackets, and accessories were at the forefront of a boom in the athleisure wear movement, especially during the COVID-19 pandemic. Influencers have also helped drive consumers to spend $90 to $140 for a pair of workout pants and more than $120 for a hoodie.
Lululemon sued Costco this year claiming the warehouse retailer was selling “knockoff” activewear that infringed on the company’s popular designs.
The company has also been under scrutiny for its use of synthetic fabrics and “forever chemicals.”
Thursday’s shift in management is the latest chapter in Lululemon’s bumpy year.
Wilson, who left the company in 2015, criticized Lululemon’s direction in a full-page ad in the Wall Street Journal in October, calling its decline a “sinking ship” and a “plane crash.” He lambasted the company’s diversity and inclusion efforts and recent partnership decisions.
Lululemon also announced its financial results for July through September sales on Dec. 11, which showed continued malaise in the United States.
U.S. net revenue declined 2 percent, while international net revenue increased 33 percent. Quarterly profit dropped 13 percent.
Higher costs from U.S. tariffs and strong competition from Alo Yoga and less-expensive brands were adding to Lululemon’s struggles.
Customers have also reported dissatisfaction with some of the brand’s newer pieces.
“The perfect pose that the brand used to execute with ease has given way to a much scrappier posture that has been present for quite some time,” said Neil Saunders, managing director of GlobalData Retail, wrote on LinkedIn.
The company opened 12 new company-operated stores this summer to bring the total number of outlets to 796, according to the report.
Company sales were expected to decline by 3 percent for the remainder of the year, compared with 2024.
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