Lululemon Athletica Inc. said Chief Executive Officer Calvin McDonald is stepping down as the pricey yoga-wear brand looks to reignite growth amid pressure from upstart competition and it founder. Chief Financial Officer Meghan Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs.
Calvin McDonald, CEO of Lululemon, is stepping down from that role at the end of January, the company announced Thursday. McDonald is also stepping down from the board of directors and will serve as an advisor to the company through March.
Lululemon Athletica Inc (NASDAQ:LULU) stock jumped about 7% after Thursday's closing bell as the athletic apparel brand's third quarter earnings topped estimates. Revenue was up 7% year-over-year at $2.6 billion, ahead of estimates of $2.49 billion.
Lululemon CEO Calvin McDonald will depart in January
lululemon athletica inc. faces significant headwinds, with LULU stock halved despite healthy financials and strong free cash flow. Growth has slowed to 7-8%, with macroeconomic pressures and shifting consumer trends—especially in the Americas—dampening sentiment and sales outlook. LULU's valuation has compressed to a P/E of 12.5 and EV/EBITDA of 8.4, but operating risk remains high due to fickle consumer preferences.
LULU faces softer U.S. demand, rising tariffs and stale key franchises, testing whether modest price hikes and faster innovation can defend its premium edge.
Lululemon (LULU) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Lululemon Athletica (NASDAQ: LULU) spent years building a reputation as the premium athleisure brand.
Lululemon Athletica Inc (NASDAQ:LULU) faced a challenging third quarter, which will be reflected in its sales, margins and earnings per share (EPS), according to Jefferies analysts. Jefferies analysts forecast Q3 sales of $2.3 billion, down roughly 2% year-over-year, with comparable store sales declining 3%.
Lululemon Athletica Inc (NASDAQ:LULU) stock is sliding ahead of the athletic retailer's third-quarter earnings report, due out after the close Thursday, Dec. 11.
Besides Wall Street's top-and-bottom-line estimates for Lululemon (LULU), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended October 2025.
Lululemon (LULU) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.