Lululemon Names Sephora Executive as New CEO -- 2nd Update
July 24 2018 - 5:44PM
Dow Jones News
By Waverly Colville
Lululemon Athletica Inc. has appointed Calvin McDonald to serve
as its next chief executive officer, tapping a top executive of
beauty company Sephora to lead the athletic-wear maker.
Lululemon said Tuesday that Mr. McDonald's appointment is
effective Aug. 20. He will have a $1.25 million base salary and
serve as a board director, according to a Securities and Exchange
Commission filing.
The hire comes as the Vancouver-based retailer has been
searching for several months for a successor to former CEO Laurent
Potdevin, who abruptly resigned in February after the company said
he engaged in behavior that failed to meet the company's standards.
Mr. Potdevin had served as CEO since January 2014.
Mr. McDonald, 46 years old, has been the president and CEO of
the Americas for Sephora, owned by French luxury goods conglomerate
LVMH Moët Hennessy Louis Vuitton, since 2013. Under his leadership,
Sephora delivered sales growth, expanded its products and created
new online and in-store experiences, Lululemon said in a press
release.
Mr. McDonald, a Canadian, also served as CEO of Sears Canada and
worked at Canada's largest retailer, Loblaw Cos., for 17 years.
Lululemon Executive Chairman Glenn Murphy called Mr. McDonald
"the ideal match" for the brand. With the appointment, Mr. Murphy
is expected to serve as nonexecutive chairman and will assist with
the leadership transition.
The three executives who ran the company since Mr. Potdevin's
exit, Celeste Burgoyne, Stuart Haselden and Sun Choe, will report
to Mr. McDonald.
Shares in Lululemon, which have nearly doubled over the past
year, rose 1.2% to $124.40 in after-hours trading Tuesday.
The company will release its second-quarter earnings report Aug.
30.
Shares in Lululemon rose 0.8% in after-hours trading
Tuesday.
Write to Waverly Colville at waverly.colville@wsj.com
(END) Dow Jones Newswires
July 24, 2018 18:29 ET (22:29 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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