Lululemon CEO Calvin McDonald will step down effective Jan. 31 after a year of underperformance. The board is searching for a new CEO with a leading executive search firm. McDonald will stay on as a senior advisor until March 31. The company faces challenges from tariffs, competition, and changing consumer preferences.

To combat these challenges, Lululemon has been expanding internationally and offering a wider assortment of products. Its business growth has been primarily driven by international markets, while its largest market, the Americas, has been declining. The end of the de minimis exemption is also impacting the company’s profits, with tariffs expected to cost $240 million for the year.

Read more at CNBC: Lululemon CEO Calvin McDonald will depart in January