Lululemon Athletica said on Thursday that its CEO, Calvin McDonald, will step down in January, after about seven years at the helm as the yogawear maker navigates a challenging consumer environment in the United States as well as growing competition from newer brands.
The company is searching for its new CEO, it added.
Still, the company’s shares (LULU) were up about 7% in extended trading as it lifted its annual profit forecast, helped by stronger sales in international markets, and approved a $1 billion increase to its stock buyback program.
Known for its pricey leggings and athleisure clothing, Lululemon’s sales have struggled in the US 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 yogawear retailer now expects annual revenue between $10.962 billion and $11.047 billion, compared with its prior forecast of $10.85 billion to $11 billion.
Lululemon now expects annual profit between $12.92 and $13.02 per share, compared with previous expectations of $12.77 to $12.97 apiece.
It now expects 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, beating estimates of $2.48 billion, according to data compiled by LSEG.
