The company has advised its shareholders to not take any action at this time.
Initiating a proxy fight, Chip Wilson, the founder of Lululemon Athletica has nominated three independent directors to the company’s board. The development comes days after the company notified the exit of Chief Executive Officer (CEO) Calvin McDonald.
Reuters reported that the company has been struggling to find its footing with younger and affluent shoppers and is battling intense competition from newer rivals. The three director nominations to the company’s board include former on running co-CEO Marc Maurer, former ESPN Chief Marketing Officer Laura Gentile and former Activision CEO Eric Hirshberg.
The company has issued its comment on the founder’s statement. “Lululemon shareholders do not need to take any action at this time. The Board will review and consider Wilson’s director candidate nominations and present a formal recommendation regarding his nominations in the company’s definitive proxy statement in advance of the company’s 2026 annual meeting of shareholders,” the company noted.
Over the last ten years, the Board has overseen a significant period of growth, with revenues increasing nearly USD 9 billion, from USD 2.1 billion in fiscal year 2015 to USD 11 billion expected in fiscal year 2025 based on our guidance. Over the same time period, income from operations will have grown by nearly six-fold, the company added in its statement.
“Wilson has not been involved with the company for a decade, and since his departure, lululemon has continued to adapt to the marketplace and lead the industry, building one of the most compelling growth stories in retail. The lululemon Board of Directors will continue to take actions that we believe are in the best interests of all the company’s shareholders,” it pointed out.
