- Lululemon publicly dismissed founder Chip Wilson's ideas as "misguided" in a letter.
- Wilson proposed new board members to redefine Lululemon, which the company rejected.
- Lululemon's stock fell 40% this year amid competition and consumer spending issues.
NEW YORK CITY — Lululemon has publicly rejected founder Chip Wilson's ideas to fix the struggling athleisure brand, which includes an overhaul of its board, with some strongly worded criticisms of its former leader.
Wilson, who is also the company's second-largest shareholder, launched his latest salvo last December in his campaign against the company's management. He nominated three new directors for Lululemon's board, including executives from ESPN and Activision Blizzard, saying they were needed to "redefine Lululemon."
In a letter to shareholders, Lululemon on Monday rejected Wilson's nominations for the company's board, saying that voting for them would "endorse his misguided perspectives" and accusing him of attempting to "regain increased influence" over the brand he left more than a decade ago.
"Mr. Wilson has shown that he does not have a full understanding of the business today or the brand's future potential and remains intractably focused on the past," Lululemon said. "His vision for Lululemon appears to be frozen in time, viewing Lululemon through the lens of a founder who has been outside the boardroom for over a decade and away from any operating responsibility within the company for nearly 15 years."
The public battle began after Lululemon announced that its CEO, Calvin McDonald, was leaving the company, capping off a seven-year stint. A few months later, Lululemon named former Nike executive Heidi O'Neill as its new CEO, starting in September.
Lululemon's letter is its first public response to Wilson. He said that the company needs visionary creative leadership to thrive," and that its current board members "lack these skills."
Wilson, who stepped down as CEO in 2005, has accused the company of losing its "cool" factor and routinely attacked its decisions. In 2025, he criticized Lululemon's diversity and inclusion efforts. In a 2018 interview with CNN, he said he lost control of the company after it went public and that he was stifled by its bureaucracy.
Monday's pointed letter was released ahead of Lululemon's next shareholders meeting in June, when they will vote on the board. Wilson didn't immediately respond for comment.
Lululemon also said that it interviewed Wilson's picks, and "determined that their appointment would not be beneficial to shareholders and, if elected, would remove critical skills" from the board.
Lululemon's stock has lost 40% of its value this year. It's been struggling with tariffs, consumer pullback from discretionary spending and mounting competition from brands like Vuori and Alo.
