Wanted: CEO with 'Growth Experience'. Lululemon Hunts for its Next Leader

Core Viewpoint - Lululemon's stock has significantly declined this year, prompting the need for a new CEO to guide the brand through recovery [1] Leadership Transition - Calvin McDonald will conclude his approximately eight-year tenure as CEO at the end of January, with the company currently searching for a permanent replacement [2] - The transition has been marked by criticism from founder Chip Wilson, who expressed concerns over the board's planning and succession process [3][4] Shareholder Concerns - Chip Wilson, a major shareholder with over 8% ownership, criticized the board for failing to understand the target customers and for the erosion of the brand's premium value [4] - The absence of a successor during McDonald's departure may lead to investor uncertainty regarding Lululemon's future [5] Market Position and Strategy - Analysts noted that many retailers have successfully named successors ahead of CEO retirements, contrasting Lululemon's situation [5] - Wilson has previously criticized the company's strategy, suggesting it is trying to appeal to a broad audience rather than focusing on its core customer base [6] Management's Focus - The company is seeking a new CEO with experience in growth and restructuring, aiming for improvements following initial changes [7] - Lululemon's U.S. revenue fell by 3% year-over-year last quarter, prompting plans to increase new merchandise to 35% of offerings in spring [8] Product Strategy - The company acknowledged that product life cycles have been too long for key franchises, indicating a need for more "newness" in its inventory [9] - Interim co-CEOs will be appointed during the search for a new leader, with Wilson advising until the end of March [10]