Lululemon Athletica’s chief executive, Calvin McDonald, will step down from the role early next year, the company announced on Thursday, as the brand that helped put athleisure wear on the map looks to regain its footing in a crowded market.
Shares of Lululemon have fallen nearly 50 percent over the year, as the retail giant has struggled to compete with younger rivals like Vuori and Alo Yoga. Lululemon’s founder, Chip Wilson, has criticized Mr. McDonald and the company’s board of directors over its performance and what he called a lack of innovation. In October, Mr. Wilson took out a full-page advertisement in The Wall Street Journal detailing his dissatisfaction.
“The board insists on operator/finance CEOs who can ‘speak Wall Street,’ rejecting the idea of a product driven CEO,” Mr. Wilson wrote in his advertisement, which he titled ‘Lululemon: in a Nosedive.’ Mr. Wilson also said the company had “lost its edge.”
Shares of Lululemon jumped 10 percent on strong earnings and news of Mr. McDonald’s planned departure on Jan. 31, 2026.
Lululemon said it was working with an executive search firm to find Mr. McDonald’s replacement. Mr. McDonald will serve as a senior adviser to Lululemon through March 31. The company’s chief financial officer, Meghan Frank, and chief commercial officer, André Maestrini, will serve as interim co-chief executives.
Marti Morfitt, Lululemon’s chairwoman, will become executive chair.
Many retail companies have struggled under pressure from tariff increases and a slowdown in consumer spending. But Lululemon’s challenges have come under a particularly bright spotlight in part because of its founder’s continued scrutiny after leaving the board in 2015. Mr. Wilson had resigned as chairman of the board but stayed as a member in 2013 after he made comments about how a women’s weight affected the look and fit of the yoga pants.
Still, some analysts questions whether the brand’s struggles required new leadership.
“I do think with some of these founder-led brands, you do see sudden changes in leadership. It’s not the leadership that needs to change, it’s the direction,” Neil Saunders, managing director at the consulting firm GlobalData Retail, said in an interview. “The underlying challenge is they grew enormously and it’s difficult to keep market share in the athleisure market when everyone is snipping at your heels. They hadn’t pivoted enough.”
Lululemon said Thursday it had increased revenue by 7 percent, to $2.6 billion, in its third quarter, while comparable sales increased 1 percent. A large component of its growth came internationally, where net revenue increased 33 percent. In the Americas, net revenue fell 2 percent.
The board also said it had approved the company’s increasing its program to buy back stock by $1 billion, bringing the funds available to purchase stock to $1.6 billion.
Jordyn Holman contributed reporting.
Lauren Hirsch is a Times reporter who covers deals and dealmakers in Wall Street and Washington.
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