|
The
company, based in Vancouver, Canada, said that McDonald and the
board are working together to manage a “smooth transition,” and
he will serve as a senior advisor to the company through March
31, 2026.
The board said it was conducting a comprehensive search in
partnership with a leading executive search firm to select his
successor. McDonald took the helm in 2018.
Lululemon said Marti Morfitt, the board's chair, will take on
the expanded role of executive chair, effective immediately, to
“ensure the continued execution of the company’s near- and
long-term growth strategy during the leadership transition.”
In addition, Meghan Frank, chief financial officer, and André
Maestrini, chief commercial officer, will serve as interim
co-CEOs following McDonald’s exit, the company said.
The announcement came alongside Lululemon's third-quarter
results, which showed continued malaise in the U.S. Net revenue
in the Americas declined 2%, while international revenue
increased 33%.
Quarterly profit dropped 13%.
Lululemon has been wrestling with a host of problems such as
higher costs from President Donald Trump's tariffs to stiffer
competition from the likes of Alo Yoga. The brand is known for
its simple workout sets worn by Kendall Jenner and Hailey Bieber.
Meanwhile, Lululemon's founder Chip Wilson has been an outspoken
critic of the company's direction.
“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, ” Neil Saunders, managing director of
GlobalData Retail, wrote in a note published on Thursday.
Saunders noted that Lululemon faces three problems: The market
for athleisure is weaker than it was, while the competition is
“more intense and of a higher caliber.” He also said that
against this backdrop Lululemon's execution has faltered.
He noted that Wilson's criticism of the company made it
difficult for McDonald, and he believes that is one of the
reasons for his exit.
Shares were up more than 10% in after hours trading Thursday
when the news was announced.
All contents © copyright 2025 Associated Press. All rights reserved
|
|
