Calvin McDonald is leaving the corner office of Lululemon Athletica Inc.
The chief executive officer “mutually agreed” with the board that he would step down as of Jan. 31, according to a Securities and Exchange Commission filing. He will also step down as a director of the company.
That caps a remarkable run that started in 2018 and saw Lululemon more than triple its sales, which are on track to hit $11 billion this year.
But while the company seemed bulletproof for much of that time, the business has faltered lately and is resetting in the U.S., while founder Chip Wilson, who still has a significant stake in the company, has been sniping from the sidelines.
Marti Morfitt, chair of the board of directors, will serve as executive chair and named two interim co-CEOs — chief financial officer Meghan Frank and president and chief commercial officer Andre Maestrini.
The board has established a CEO search committee to find a permanent CEO.
McDonald will receive a $3.1 million severance payment.
“Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years,” said McDonald. “Together, we have transformed the athletic apparel industry and the opportunity ahead for Lululemon is substantial. I believe the outstanding product pipeline we’ve built, and action plan we’ve put into place, will yield positive results, and deliver value to shareholders in the months and years ahead. I am committed to fully supporting the transition and helping guide our leadership team in my advisory role as they execute against our strategy.”
Morfitt thanked McDonald for “his visionary leadership building Lululemon into one of the strongest brands in retail.”
“During his tenure, Calvin led Lululemon through a period of impressive revenue growth, with differentiated products and experiences that resonated with guests around the world,” Morfitt said. “We are grateful for Calvin’s numerous contributions and appreciate his continued support over the coming months to facilitate a seamless transition.”
