NEW YORK: Lululemon Athletica Inc founder Chip Wilson is pushing for changes to the board before the yoga wear maker selects a new chief executive officer (CEO), highlighting the contentious relationship between the company and one of its biggest shareholders.
Wilson is nominating three director candidates for election at Lululemon’s 2026 annual meeting: former On Holding co-CEO Marc Maurer, former ESPN chief marketing officer Laura Gentile and former Activision CEO Eric Hirshberg.
The company hasn’t set a date for its shareholder meeting, but usually holds the event in June.
In a statement Monday, Lululemon said it’s evaluating the nominees, while defending its current board as “highly engaged” and “well-equipped to provide effective guidance on the company’s direction and the execution of our growth strategy.”
The company has quickly gone from Wall Street darling to a troubled retailer beset by activists, with the shares dropping 44% in 2025.
The company’s revenue is expected to decline in the current quarter for the first time since the start of the pandemic.
Wilson is escalating his long-running feud with the company he founded as it looks for a new CEO and a return to the rapid growth of past years.
Wilson, who stepped down from management in 2012 and departed its board in 2015, has long criticised the company, arguing it’s failed to keep pace with competitors.
“As I have stated for years, Lululemon needs visionary creative leadership to thrive,” Wilson said in a statement.
“The simple truth is that the current board lacks these skills and, as a result, Lululemon is unable to win back the confidence of its critical stakeholders and regain commercial momentum.”
Wilson, who owns about 8% of Lululemon’s stock, has been marginalised at times by the company, including a 2019 move that removed his right to nominate board nominees.
Lululemon distanced itself from Wilson following controversial remarks, including an interview with Bloomberg TV more than a decade ago in which he said Lululemon’s pants “don’t work for some women’s bodies.” Wilson subsequently apologised for the comment.
On Monday, the company said its board and management “have engaged extensively and in good faith for many years with Wilson to understand his perspectives and communicate our strategy.”
It added that it had previously asked Wilson for the names of his nominees, but he “declined to engage further.”
It added that Wilson hasn’t been involved with the company for a decade, while Lululemon has “continued to adapt to the marketplace and lead the industry” since his departure.
Lululemon said earlier this month that Calvin McDonald will step down as CEO at the end of January, and that the company is searching for his successor.
Meanwhile, activist investor Elliott Investment Management has built a stake of more than US$1bil in the company and has reportedly been working with retail executive Jane Nielsen as a potential replacement.
Wilson and Elliott aren’t coordinating, but a person familiar with Wilson’s thinking said that he doesn’t view Elliott’s campaign as at odds with his own.
The Vancouver-based company’s growth has slowed in recent quarters and that trend is expected to continue, according to analyst estimates.
Sales growth is near the lowest level since the firm went public in 2007 as Lululemon faces fierce competition from upstarts including Alo Yoga and Vuori, as well as knockoffs from lower-priced retailers.
Lululemon is unlikely to reach its goal of US$12.5bil in sales by 2026, which was set in 2022, even with a lead over its activewear peers, according to a note from Poonam Goyal, senior analyst at Bloomberg Intelligence.
Wilson is betting the board candidates can help Lululemon, which pioneered the athleisure category, to recapture some of the brand’s lost cachet.
Maurer, who left On earlier this year after 12 years at the company, helped to oversee rapid growth of an upstart fitness brand. With its popular running shoes, On has captured market share from dominant players Nike Inc and Adidas AG – experience that could help Lululemon revitalise its performance.
Hirshberg, meanwhile, could lend marketing expertise to Lululemon’s board.
Wilson has criticised the company, which for years avoided discounts and was able to charge a premium for its apparel, for being too focused on inclusivity.
Gentile could help the company reconnect with women – Lululemon’s key customer. She founded ESPNW, the Walt Disney Co unit that focuses on women’s sports, in 2010.
She left ESPN in 2023 after two decades and started Storied Sports this year – a brand-building studio focused on telling the stories of female athletes.
“It’s pretty obvious that women control a lot of the disposable income in this country, and now especially in leadership positions with a real voice and a real empowerment to make those decisions,” Gentile said in an Bloomberg Business of Sports interview released last week. — Bloomberg
