Brands
Lululemon’s chief executive to step down as slowdown bites
CANADA: Lululemon is changing its top runner mid-race. Calvin McDonald will step down as chief executive by January 31, 2026, as the athleisure giant grapples with slowing sales and mounting investor pressure. Markets liked the move. Shares surged more than 10 per cent in post-market trading in New York.
The Vancouver-based company said it has launched a global search for its next chief, working with an executive search firm. In the interim, cfo Meghan Frank and chief commercial officer André Maestrini will serve as interim co-ceos, while board chair Marti Morfitt takes on an expanded role as executive chair.
The announcement landed alongside Lululemon’s third-quarter results, which underscored the challenge ahead. Net revenue in the Americas slipped 2 per cent, while international sales jumped 33 per cent, highlighting both strain at home and promise abroad.
McDonald, who has led Lululemon since 2018, said the role had been the highlight of his career and pledged to support the transition in an advisory capacity. His seven-year tenure delivered a 37 per cent rise in the company’s shares, though that lagged far behind the S&P 500’s 142 per cent gain over the same period. By Thursday’s close, Lululemon stock had fallen more than 50 per cent from its peak.
Pressure has been building. Chip Wilson, the billionaire founder and major shareholder, has openly pushed for board-level changes and a sharper focus on product innovation, adding urgency to the leadership reset.
Born and raised in Canada, McDonald joined Lululemon after leading Sephora Americas and Sears Canada, following a 17-year career at Loblaw Companies. He holds an mba from the University of Toronto and a science degree from the University of Western Ontario.
For now, investors are cheering the shake-up. But the real test lies ahead. A new leader will need to reignite growth, steady the core market and keep the brand stretching – without losing its balance.
Brands
Lululemon picks former Nike executive to be its next chief
Heidi O’Neill, who helped grow Nike into a $45 billion giant, will take the top job in September
CANADA: Lululemon has found its next chief executive, and she comes with serious credentials. The athleisure giant named Heidi O’Neill as its new CEO on Wednesday, ending a search that has left the company running on interim leadership since earlier this year. O’Neill will take charge on September 8, 2026, based out of Vancouver, and will join the board on the same day.
O’Neill brings more than three decades of experience across performance apparel, footwear and sport. The bulk of that time was spent at Nike, where she was a central figure in one of corporate sport’s great growth stories, helping take the company from a $9 billion business to a $45 billion global powerhouse. She oversaw product pipelines, brand strategy and consumer connections, and played a significant role in shaping how Nike spoke to athletes around the world. Earlier in her career, she worked in marketing for the Dockers brand at Levi Strauss. She also brings boardroom experience from Spotify Technology, Hyatt Hotels and Lithia and Driveway.
The board was unequivocal in its enthusiasm. “We selected Heidi because of the breadth of her experience, her demonstrated success delivering breakthrough ideas and initiatives at scale, and her ability to be a knowledgeable change and growth agent,” said Marti Morfitt, executive chair of Lululemon’s board.
O’Neill, for her part, was bullish. “Lululemon is an iconic brand with something rare: genuine guest love, a product ethos rooted in innovation, and a global platform still in the early stages of its potential,” she said. “My job will be to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world.”
Until she arrives, Meghan Frank and André Maestrini will continue as interim co-CEOs, before returning to their previous senior leadership roles once O’Neill steps in.
Lululemon is betting that a Nike veteran who helped build one of the world’s most powerful sports brands can do something similar for an athleisure label that has genuine love from its customers but is still chasing its full global potential. O’Neill has done it before at scale. The question now is whether she can do it again.
