"Lululemon Athletica said that CEO Calvin McDonald was leaving the company without a replacement and raised its annual profit forecast, sending shares up about 10 per cent in extended trade on Thursday. McDonald, a Canadian who studied at the University of Toronto and Western University, will step down from Lululemon in January after about seven years at the helm. Prior to taking the job at Lululemon, McDonald served as president and CEO of Sephora Americas. He was also previously the president and CEO of Sears Canada."
"Known for its pricey leggings and athleisure clothing, Lululemon's sales have struggled in the U.S. as it lost ground to upstart brands such as Alo Yoga as well as private-label replicas, with executives noting in September that they were disappointed with its results and product execution in the country. The shakeup at the top also is the latest in a string of big changes in C-suites for retailers as they look to capture a younger, more cautious audience and wade through supply chain and operational issues."
Calvin McDonald will step down as CEO in January after about seven years leading Lululemon. Meghan Frank and Andre Maestrini were named interim co‑CEOs during the search for a successor. The company raised its annual profit forecast and approved a $1 billion increase to its stock buyback program. Shares rose about 10 percent in extended trading following the announcements. Lululemon's U.S. sales have weakened as the brand lost ground to upstart competitors and private‑label replicas, with executives citing disappointment in product execution. Founder Chip Wilson expressed frustration with marketing and considered a proxy fight. McDonald previously led Sephora Americas and Sears Canada.
Read at www.cbc.ca
Unable to calculate read time
Collection
[
|
...
]