Some analysts think Calvin McDonald’s departure paves the way for a pivot for the beleaguered activewear company, and its stock.

Six companies, including Alnylam Pharmaceuticals (ALNY) and Seagate Technology Holdings (STX), are set to join the Nasdaq 100 Index (NDX) as part of the benchmark’s annual reconstitution this month, with Biogen (BIIB) and Lululemon Athletica (LULU) among notable exclusions.

Investors cheered the departure of Lululemon Athletica’s chief executive, with the athleisure-apparel maker’s stock closing at a three-month high on Friday.

The athleisure giant is finally making changes to its overcrowded, inventory-packed stores.

Feeling the heat from rivals and unable to address decline in its domestic market, Lululemon has announced CEO Calvin McDonald will leave his role at the end of January.

Joining me today to talk about our results are Calvin McDonald, CEO; and Meghan Frank, CFO. Before we get started, I'd like to take this opportunity to remind you that our remarks today will include forward-looking statements reflecting management's current forecast of certain aspects of lululemon's future.

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Lululemon CEO Calvin McDonald will step down in the first quarter of 2026 as the athleisure clothing brand faces significant competition challenges.

The sell-off and the troubles surrounding Lululemon have caught the attention of many people, including its founder and previous CEO, Chip Wilson. He doesn't seem all that surprised by its challenges, as he doesn't appear to be convinced that the business is going in the right direction.