Lululemon Names Sephora Executive as New CEO -- 2nd Update

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 [e-mail]

(END) Dow Jones Newswires

July 24, 2018 18:29 ET (22:29 GMT)

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