Calvin McDonald, who had led Lululemon Athletica for nearly seven years, officially left the company on January 31 2026, a move announced on February 11 and 12 2026. He will take the helm of The Wella Company on April 2 2026, bringing his experience from Sephora and a track record of scaling consumer brands to the hair‑care business now owned by KKR.
The Lululemon board has appointed CFO Meghan Frank and President/Chief Commercial Officer Andre Maestrini as interim co‑CEOs. Their mandate is to maintain momentum on the company’s turnaround plan while a permanent CEO is sought, a transition that adds uncertainty to the execution of its product‑innovation and margin‑recovery agenda.
Lululemon’s most recent quarterly results, released December 11 2025, showed net revenue up 7% to $2.6 billion, but diluted earnings per share fell 11% to $2.59 from $2.87 a year earlier. Gross margin contracted 290 basis points to 55.6% due to tariffs, markdowns and credit‑card programs. International revenue surged 33%—with China up 46%—while Americas revenue slipped 2%, and comparable sales in the U.S. fell 5%. The mix shift and margin compression explain the earnings shortfall despite revenue growth.
During the earnings call, CFO Meghan Frank said, "We remain focused on executing our action plan to drive improvement in our U.S. business and look forward to the opportunities in front of us." McDonald’s tenure had driven significant international expansion and revenue growth, but the company now faces a slowdown in its core U.S. market and margin pressure that the interim leadership must address.
Wella’s new CEO, effective April 2 2026, joins a brand that KKR acquired from Coty at the end of 2025. McDonald’s background in category expansion and product differentiation is expected to accelerate Wella’s innovation pipeline and strengthen its position in the competitive beauty sector.
Investors have expressed concern about Lululemon’s margin compression and the slowdown in the U.S. market, while noting the company’s strong international growth. The CEO transition adds uncertainty to the company’s strategic execution, but the appointment of experienced interim leaders and the search for a permanent CEO signal a commitment to maintaining the turnaround momentum.
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