The proxy battle comes at a time when Lululemon’s shares have dropped nearly 43% this year|Elvert Barnes|CC BY-SA 2.0
Athleisure wear Lululemon has escalated its proxy battle with founder Chip Wilson, sending a letter to shareholders urging them to reject his board nominees at the upcoming June 25 annual meeting.
In the letter, the company says Wilson has “outdated perspectives” and “troubling conflicts of interest.”
What happened
Wilson, Lululemon’s largest individual shareholder with an 8.97% stake, stepped down as CEO in 2005 and departed as chairman in 2013.
He has publicly blasted Lululemon’s board’s decision over the years and has argued that the company has lost its cool factor. He criticized the appointment of new CEO Heidi O’Neill, who spent almost 30 years at Nike, saying that the move is “not the symbol of transformative, creative-first leadership.”
The proxy battle comes at a time when the athleticwear giant’s shares have dropped nearly 43% this year. It issued a weak fiscal 2026 guidance in March due to a cooling global athleisure market. Trump tariffs and US consumers’ pullback from spending also slowed sales.
Lululemon also faces competition from rivals like Alo Yoga and Vuori, where Wilson has admitted to advising, according to security filings.
Lululemon’s new CEO joins in September. The retailer counters Wilson’s critiques, noting that its current leadership successfully scaled the brand into an $11 billion business.