Lululemon Founder Chip Wilson Launches Proxy Battle

Lululemon founder Chip Wilson has initiated a proxy battle to change the leadership of the brand's board. Wilson, who stepped down from the company in 2013, nominated three new board members in December. The billionaire, who holds an 8% stake in the company, has a history of publicly criticizing Lululemon's direction, marketing, and leadership decisions.

The move comes as Lululemon faces market challenges, including shares that have underperformed compared to peers over the last two years. The company recently announced that CEO Calvin McDonald would leave his role in January 2026, naming interim co-CEOs to lead the search for a replacement. Wilson has heavily criticized this succession plan, claiming shareholders have no faith in the current board's ability to select a new leader.

In late December, Chip Wilson launched a proxy battle by nominating three individuals to the Lululemon board. In a statement regarding his campaign, Wilson said, "My passion for the Lululemon Athletica muse has never changed, but I know this campaign for change cannot be about me. It is about recommitting Lululemon to genuine creative leadership that will re-establish a brand of enduring strength."

The catalyst for this move appears to be the company's recent announcement regarding its CEO transition. Lululemon revealed that CEO Calvin McDonald would depart at the end of January 2026. In response, Wilson issued a statement expressing deep concern over the board's planning capabilities. "As one of the largest active shareholders of Lululemon, I am deeply concerned about what appears to be a tremendous failure by the board to competently plan for the future and manage an effective succession process," Wilson stated. He further claimed that "shareholders have no faith" in the board's ability to select a new CEO.

Despite Wilson's aggressive stance, Lululemon issued a statement defending its progress. The company noted, "Mr. 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."

Wilson has a long history of controversial comments regarding Lululemon since his departure. In October, he placed an advertisement in The Wall Street Journal criticizing the brand's performance. He described the company's situation as a "loss of cool," blaming "financed focused CEOs" who he claims do not understand products or how to motivate talent. He compared the brand's decline to a "plane crash" and a "sinking ship."

Marketing has been a frequent target for Wilson. In a January 2024 interview, he criticized the company's advertisements for featuring models he described as "sickly," "unhealthy," and "not inspirational." He stated, "They're trying to become like the Gap, everything to everybody. And I think the definition of a brand is that you're not everything to everybody." He also explicitly stated he did not agree with Lululemon's "whole diversity and inclusion thing."

Previous remarks from when he was chairman also sparked controversy. In 2013, regarding complaints about leggings being sheer, he told Bloomberg TV, "Frankly, some women's bodies just don't actually work for it … It's really about the rubbing through the thighs, how much pressure is there over a period of time, how much they use it." He stepped down as chairman shortly after those comments.

Despite his criticisms, Wilson has praised certain aspects of Lululemon's business model. In a 2023 interview with Tony Robbins, he described the company's economic engine as "unbeatable." He specifically highlighted the vertical retailing model, noting, "Nobody's been able to replicate the muscle of this vertical retailing model, which costs so much money to get into." This model eliminates third-party retailers from the business plan.

Wilson has consistently argued that Lululemon owes its success to a specific demographic. He told Tony Robbins, "Our success was exactly that 32-year-old single professional woman — highly disposable income, very fashionable, athletic." He believes the brand should maintain a sharp focus on this group rather than attempting to appeal to everyone.

The tension between Wilson and the board is not new. He recounted a 2023 interview where he described board members as "Wall Street people" who lacked creativity. He recalled telling them, "Somebody in here has gotta stand for the employees. Somebody has gotta stand for the quality of the product. Nobody in here cares about it." He concluded by telling them, "I think you should all fire yourselves," to which he claims they responded by firing him.

Lululemon is currently navigating a transition period. With shares underperforming compared to its peers over the last two years and a CEO departure scheduled for 2026, the company is facing scrutiny from investors. The appointment of CFO Meghan Frank and CCO André Maestrini as interim co-CEOs is intended to maintain stability during the search for a permanent replacement.

The board has undergone significant changes since Wilson's departure in 2013. It is standard practice for public companies to elect new board members regularly. However, Wilson's latest push suggests he believes the current governance structure is failing to protect the brand's identity and value.