Lululemon Athletica said on Thursday that its chief executive officer Calvin McDonald will step down from the top job effective January 31, after about seven years at the helm. The company is searching for its new CEO, it added.
The company also raised its annual revenue and profit forecasts betting on a recovery in demand for its new sportswear launches in the United States. Its net revenue in the third quarter increased 7 percent to $2.6 billion, driven by strong international demand, while sales in the Americas fell 2 percent.
Lululemon’s shares were up nearly 5 percent in extended trading after it also approved a $1 billion increase to its share repurchase program.
The yogawear retailer now expects annual revenue between $10.962 billion and $11.047 billion, compared with its prior forecast of $10.85 billion to $11 billion.
Lululemon now expects annual profit between $12.92 and $13.02 per share, compared with previous expectations of $12.77 to $12.97 apiece.
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