"In October, the company's controversial founder and largest independent shareholder, Chip Wilson, took out an ad in the Wall Street Journal criticizing Lululemon's direction. While he didn't go as far as to name McDonald, Wilson wrote, "The board insists on operator/finance CEOs who can 'speak Wall Street,' rejecting the idea of a product-driven CEO. These types of finance focused CEOs don't know how to attract or motivate creative talent, and even worse, they think they understand great product when they don't.""
"On Thursday, December 11, the athleisure apparel company shared a mostly positive third-quarter earnings report and announced the departure of its CEO, Calvin McDonald. He previously served as CEO of Sephora Americas. Quarter three was an improvement for Lululemon, with $2.57 billion in revenue, a 7% increase year-over-year (YOY) from compared to $2.4 billion. It also beat Wall Street's predicted $2.48 billion, according to consensus estimates cited by CNBC. Lululemon further reported $2.59 earnings per share, above Wall Street's expected $2.25."
Lululemon posted $2.57 billion in third-quarter revenue, a 7% year-over-year increase that beat Wall Street's $2.48 billion estimate, and reported $2.59 earnings per share versus an expected $2.25. CEO Calvin McDonald announced he will leave on January 31 and will remain as a senior adviser through the end of March. Meghan Frank and André Maestrini were named interim co-CEOs during the search for a permanent replacement. Founder and largest independent shareholder Chip Wilson publicly criticized the company's direction in an October Wall Street Journal ad, questioning finance-focused leadership over product-driven management. McDonald said the company has an outstanding product pipeline and an action plan to deliver shareholder value.
Read at Fast Company
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