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Lululemon goes shopping and finds its new CEO at Sephora

Written by George Anderson

Photo: Lululemon

Lululemon Athletica has announced the appointment of Calvin McDonald as its new chief executive officer, effective Aug. 20. The athleisure wear retailer’s hire ends its board’s search for a CEO that began in February when Laurent Potdevin resigned after having been found to have engaged in behavior that “fell short” of the company’s “standards of conduct.”

Mr. McDonald joins Lululemon after five years as president and CEO of Sephora’s business in the Americas. Sephora achieved double-digit grow every year during Mr. McDonald’s tenure, while expanding into new markets, including Brazil and Mexico. During his time with the chain, Sephora upgraded its store experiences and developed new digital platforms, according to the press release announcing his hiring.

“Calvin McDonald has an impressive track record leading organizations through periods of significant growth and innovation,” said Glenn Murphy, chairman of Lululemon’s board, in a statement. “He is the ideal match for the lululemon brand and culture given his strong consumer mindset, performance-driven approach and success developing people.”

At Sephora, Mr. McDonald was credited with the chain’s use of mobile tech to engage and assist its customers through every portion of the journey to purchase. Sephora uses mobile, for example, to send location-based texts to customers who live near a store to alert them to the availability of limited-edition products. The chain makes use of daily mobile content to bring users to its site and a Facebook Messenger chatbot that allows customers to book appointments with a stylist at one of its stores. Sephora has also developed numerous features such as the Digital Makeover Guide to assist customers while they shop in the chain’s stores.

Lululemon’s new CEO joins a company on the rise. In May, the chain reported first quarter results that showed its net revenue increased 25 percent year-over-year. Same-store sales were up 20 percent overall, with online growing 62 percent and physical locations up eight percent. Its gross margins increased as did its gross profit, which was up 34 percent over the same quarter in 2017.

Three executives who were responsible for running Lululemon’s day-to-day business following Mr. Potdevin’s departure — Celeste Burgoyne, Stuart Haselden and Sun Choe — will remain with the company and report to Mr. McDonald.

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