Lululemon's CEO Steps Aside as Company Faces Challenges

Lululemon Athletica is going through a big change. Calvin McDonald, the CEO, is leaving in January after leading the company for about seven years. This move comes as Lululemon faces tough times in the U. S. market, where it's losing ground to newer, trendier brands. The company is on the hunt for a new leader. Despite the leadership change, Lululemon's shares went up by about 7% after hours. This is because the company raised its profit forecast. Strong sales in international markets helped boost their confidence. They also decided to buy back more of their own shares, adding $1 billion to their program. Lululemon is known for its expensive leggings and athleisure wear. But in the U. S. , sales have been struggling. Newer brands like Alo Yoga and private-label copies are giving Lululemon a run for its money. In September, the company's executives admitted they were disappointed with their performance and product execution in the U. S. The company now expects its annual revenue to be between $10. 962 billion and $11. 047 billion. This is a slight increase from their previous forecast of $10. 85 billion to $11 billion. They also raised their profit expectations, now expecting between $12. 92 and $13. 02 per share, up from $12. 77 to $12. 97. However, Lululemon anticipates a $210 million hit to its income from operations in 2025 due to tariffs. For the quarter ended November 2, the company reported net revenue of $2. 57 billion, which beat estimates of $2. 48 billion.