McDonald is expected to remain with the company as a senior adviser until 31 March 2026, supporting the leadership transition.
In conjunction with this announcement, the company’s board is working with an executive search firm to select a new chief executive.
McDonald assumed his role at Lululemon in 2018. Since then, he has overseen a rise in annual revenue, with figures more than tripling under his leadership and the company forecasts expect $11bn in revenue for the current fiscal year.
During his tenure, Lululemon extended its operations to over 30 markets and expanded its presence in Mainland China, which became its second-largest market.
McDonald said: “Serving as CEO of Lululemon has been the highlight of my career, and I am incredibly proud of everything our team has accomplished over the last seven years. Together, we have transformed the athletic apparel industry and the opportunity ahead for Lululemon is substantial.
“I believe the outstanding product pipeline we’ve built, and action plan we’ve put into place, will yield positive results, and deliver value to shareholders in the months and years ahead. I am committed to fully supporting the transition and helping guide our leadership team in my advisory role as they execute against our strategy.”
The company has also appointed Marti Morfitt, chair of Lululemon’s board, to the expanded position of executive chair with immediate effect.
This change aims to maintain continuity in executing the company’s near- and long-term growth strategy during the change in leadership.
Chief financial officer Meghan Frank and chief commercial officer André Maestrini will assume the roles of interim co-CEOs after McDonald’s transition.
Morfitt said: “The Board is confident in our leadership transition plan, the strength of our teams across the company, and our ability to deliver on our strategy. Lululemon has a strong foundation in place, and, as we look to the future, the Board is focused on identifying a leader with a track record of driving companies through periods of growth and transformation to guide the company’s next chapter of success. While the search is underway, I look forward to working closely with Meghan, André, and the rest of the Senior Leadership Team to execute on our strategy with a sense of urgency and meaningfully drive the business forward.”
