Lululemon’s stock has dropped more than 40% this year|Phillip Pessar|CC BY 2.0
The founder of Lululemon, Chip Wilson, is trying to change the company’s board while it looks for a new CEO. Wilson owns nearly 9% stake in the athleisure brand, but won’t return to the board himself.
He nominated three new directors: Marc Maurer, former co-CEO of On Running; Laura Gentile, former ESPN marketing chief; and Eric Hirshberg, former Activision CEO.
Wilson said the goal is to bring fresh leadership and restore shareholders’ trust in the company.
Lululemon’s stock has dropped more than 40% this year, and US sales are flat, with newer brands like Alo Yoga and Vuori gaining ground. The board will review Wilson’s nominees while continuing its CEO search.
Activist investor Elliott Management is also pushing for change, supporting former Ralph Lauren executive Jane Nielsen as CEO.