Lululemon CEO Calvin McDonald will be stepping down in 2026.
The CEO has drawn criticism from founder Chip Wilson, who alleges the company has made many mistakes.
The company’s growth rate has slowed significantly in recent quarters.
10 stocks we like better than Lululemon Athletica Inc. ›
Lululemon Athletica (NASDAQ: LULU) recently reported earnings, and the company also announced the departure of its CEO, Calvin McDonald. There’s been some controversy around whether the business is going in the right direction, with Lululemon’s founder often criticizing McDonald’s decisions.
Investors appear optimistic that a change is what the business needs, as the stock has been rallying since the news came out. Could this make Lululemon a better stock to buy heading into 2026?
Image source: Getty Images.
On Dec. 11, Lululemon told its shareholders that McDonald would be stepping down as CEO as of Jan. 31, 2026. His successor hasn’t been announced, and the board of directors is working on finding a replacement. In the interim, the company has appointed Meghan Frank and André Maestrini, two executives within the business, as interim co-CEOs.
The position may require someone with not only a strong pedigree in the apparel industry but also a person with thick skin. Lululemon’s founder and former CEO Chip Wilson (who is also a major shareholder) has criticized McDonald publicly, even issuing a press release following the leadership announcement, stating that under McDonald there were “years of poor decisions” and a lack of innovation.
Wilson even seemed to claim credit for the change in CEO. “It is clear to me that only under my increasing pressure has the Lululemon board of directors finally started to listen,” he said in a press release.
McDonald took over on Aug. 20, 2018, and since then, shares of Lululemon have risen by around 50%; those gains would have been higher if not for the stock’s disastrous performance this past year. By comparison, the S&P 500 has risen by 138% during that time frame (returns are as of Dec. 15).
…..
