Lululemon Athletica‘s founder Chip Wilson mentioned on Monday he had launched a proxy struggle by nominating three unbiased administrators to the corporate’s board, simply over two weeks after the attire maker introduced the exit of CEO Calvin McDonald with out a clear successor.
Lululemon shares have shed practically half their worth this yr as the corporate struggles to seek out its footing with youthful and prosperous consumers, whereas battling stiff competitors from fast-growing newer rivals reminiscent of Alo Yoga and Vuori, in addition to stress from activist investor Elliott Administration.
Wilson has nominated three director candidates to Lululemon’s board, together with former On Operating co-CEO Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile and former Activision CEO Eric Hirshberg.
The board put in Chief Monetary Officer Meghan Frank and Chief Business Officer André Maestrini as interim co-CEOs whereas they seek for a everlasting substitute.
Reuters had reported that Elliott Administration, which disclosed a $1 billion stake within the firm earlier this month, had been working carefully for months with former Ralph Lauren govt Jane Nielsen for a possible CEO position.
When requested whether or not Wilson was teaming up with activist investor Elliott in pushing for the board change, an individual accustomed to Wilson’s considering mentioned he was not working with some other investor. On the similar time, Elliott’s marketing campaign for a brand new CEO wouldn’t intervene along with his plans, the individual added, asking to not be named.
Wilson had spoken to Nielsen, however any CEO chosen by the corporate earlier than board adjustments wouldn’t have Wilson’s assist, the supply mentioned.
“The current CEO change announcement was the third whole failure of board oversight, with no clear succession plan in place. Shareholders haven’t any religion that this board can choose and assist the subsequent CEO with out enter from a board with stronger product expertise,” Wilson mentioned in a press release.
Lululemon didn’t instantly reply to a Reuters request for remark. The corporate’s shares rose about 1% in morning buying and selling.
“Including three new board members looks as if one thing that Lululemon could be prepared to do. It’d preserve Wilson from continuously attacking the board, at the very least. The nominees seem like high quality, though solely one of many three (Maurer) has direct expertise in Lululemon’s trade,” Morningstar analyst David Swartz mentioned.
Wilson doubtless didn’t ask for a board seat for himself as he owns a major stake in Lululemon’s competitor Amer Sports activities, Swartz added.
The Wall Avenue Journal first reported about Wilson launching a proxy struggle towards Lululemon’s board earlier within the day.
Wilson’s historical past with Lululemon
Wilson is likely one of the greatest unbiased shareholders of Lululemon, with a 4.27% stake as of December 2025, based on LSEG knowledge.
The yogawear maker’s founder had beforehand known as for an pressing seek for a CEO to exchange McDonald, led by new, unbiased administrators with a deep information of the corporate to revive a “product-first” mindset on the firm.
This isn’t the primary time Wilson has pushed for adjustments at Lululemon’s board.
After founding the attire firm in 1998, Wilson withdrew from day by day operations in 2012 and resigned as chairman a yr later following a recall of see-through yoga pants that led to the departures of prime executives amid a public-relations storm.
He additionally stop the director put up in 2015 after clashing with the board over technique. Nonetheless, a proxy struggle was averted after Wilson agreed to promote about half of his 27% stake to private-equity agency Creation Worldwide for $845 million in return for 2 further director positions.
—Juveria Tabassum, Sanskriti Shekhar, and Anuja Bharat Mistry, Reuters
