Lululemon Athletica mentioned on Thursday that its CEO, Calvin McDonald, will step down in January, after about seven years on the helm because the yogawear maker navigates a difficult client surroundings within the United States in addition to rising competitors from newer manufacturers.
The firm is looking for its new CEO, it added.
Still, the corporate’s shares (LULU) had been up about 7% in prolonged buying and selling because it lifted its annual revenue forecast, helped by stronger gross sales in worldwide markets, and permitted a $1 billion improve to its inventory buyback program.
Known for its expensive leggings and athleisure clothes, Lululemon’s gross sales have struggled within the US because it misplaced floor to upstart manufacturers corresponding to Alo Yoga in addition to private-label replicas, with executives noting in September that they had been upset with its outcomes and product execution within the nation.
The yogawear retailer now expects annual income between $10.962 billion and $11.047 billion, in contrast with its prior forecast of $10.85 billion to $11 billion.
Lululemon now expects annual revenue between $12.92 and $13.02 per share, in contrast with earlier expectations of $12.77 to $12.97 apiece.
It now expects a $210 million hit to its revenue from operations in 2025 due to tariffs.
For the quarter ended November 2, the corporate reported internet income of $2.57 billion, beating estimates of $2.48 billion, in accordance to knowledge compiled by LSEG.