The polarizing founder of Lululemon says the company is in dire need of a board shakeup and has nominated three new director candidates: the recently departed co-CEO of sneaker brand On, a longtime ESPN marketing executive, and Activision’s former CEO.
Chip Wilson, 70, founded Lululemon Athletica in 1998. Even after he resigned from the Canadian company’s board of directors in 2015, Wilson has held onto a roughly 9% stake in Lululemon, making him its second-biggest shareholder behind investment manager Vanguard Group, according to The Wall Street Journal, which first reported Wilson’s intention to nominate the new board members.
On Monday, Wilson pressed shareholders to elect three new board members who he says bring the “visionary creative leadership” needed so the company can “win back the confidence of its critical stakeholders and regain commercial momentum.”
“It is clear to the world that lululemon is special, but in need of change,” Wilson said in Monday’s press release.
Wilson’s nominees are Marc Maurer, who left On in April after 12 years; Laura Gentile, ESPN’s former chief marketing officer who founded the company’s women-dedicated business espnW; and Eric Hirshberg, former CEO of Activision, the company behind games like Call of Duty and Destiny.
Wilson’s pressure campaign comes only a few weeks after Lululemon announced CEO Calvin McDonald would step down at the end of next month, with no successor yet in place.
“Shareholders have no faith that this Board can select and support the next CEO without input from a Board with stronger product experience,” Wilson said. “The Board must be refreshed so that creative, brand-first experience is empowered. This is the only way to restore shareholder confidence and set lululemon back on the path to growth, product innovation and premium quality.”
Wilson has taken heat in the past for controversial comments. In 2013, after critics complained about the “sheerness” of Lululemon’s yoga pants, he said “Frankly, some women’s bodies just don’t actually work [for the yoga pants],” and last year he criticized the company’s diversity and inclusion efforts. Wilson recognizes he shouldn’t be the face of the new board, saying in Monday’s press release, “my passion for the Lululemon Athletica muse has never changed, but I know this campaign for change cannot be about me.”
Lululemon responded to Wilson’s nominations, saying in a statement Monday that it will “evaluate Mr. Wilson’s director nominees in due course in accordance with the Board’s governance process.”
Lululemon trumpeted its most recent financial results as encouraging, citing a 7% net revenue increase and a 2% gross profit increase from the same time period a year ago. But there are troubling signs when looking deeper into the numbers. Net revenue for the Americas decreased by 2% during the third quarter of this year compared to last year, and overall income is down 11%.
Meanwhile, the stock is down roughly 45% in the past year. In September, the company blamed a decline in fiscal Q2 profit largely on “higher markdowns and tariff impact.”
A date for Lululemon’s 2026 annual shareholder meeting has not yet been set. Last year’s meeting was held June 11.
Wilson is not the only one targeting Lululemon. Activist investment firm Elliott Investment Management has reportedly amassed a stake worth more than $1 billion and is pushing for the company to make Jane Nielsen, a former Ralph Lauren executive, as its next CEO.
After the report about Elliott, Jefferies said in a Dec. 17 analyst note it was “critical” for Lululemon to refresh its board, pick a “thoughtful CEO with real leadership,” and return its roots as a yoga brand. The firm said the turnaround will require a “multi-year lift.”
