Calvin McDonald’s departure is a problem for Lululemon |
When Calvin McDonald was appointed CEO of Lululemon in 2018, the activewear brand was a cult brand. But it had the potential to become a retail giant.
Chip Wilson founded Lululemon in Vancouver in 1998 as a yoga brand. When he left the CEO role in 2005, the company was generating $80 million a year. In the decade that followed, Lululemon grew steadily, boosted by the broader athleisure trend. But it was McDonald—who previously spent five years delivering double-digit growth as CEO of Sephora Americas—who transformed Lululemon into one of the biggest clothing companies in the world.
Over the course of his seven-year tenure, McDonald more than tripled the company’s annual revenue from $2.6 billion in 2018 to $10.6 billion in 2024. (Revenue is expected to hit $11 billion this year.) He led the company’s global expansion to 30 countries; international revenue alone is now $3 billion. And he helped Lululemon become known not only for activewear, but also for apparel you could wear to the office.
Now, McDonald is on his way out. Last week, at Lululemon’s earnings call, the company announced that it was looking for a new CEO with experience in “growth and transformation“. This comes after Lululemon’s growth slowed to 10% last year from 19% the year before. There are many reasons for the company’s recent troubles, from product missteps like a widely-panned Disney collaboration to U.S. tariffs to weaker consumer spending. All of this has led Lululemon’s stock to tumble over the past two years. (Lululemon declined to comment for this story.)
But McDonald’s track record suggests that he would have been capable of steering Lululemon back to growth—and the company may ultimately regret its decision to let him go.
What’s clear is that Lululemon’s........