Lululemon Founder Slams Board Over Sheer Leggings Recall

Lululemon's founder Chip Wilson has launched a scathing public critique of the company's board following the recall of sheer 'Get Low' leggings. In a LinkedIn post, Wilson described the incident as a 'new low' for the brand and a 'total operational failure'.

The controversy comes as the athleisure giant faces mounting pressure from investors and analysts, with its stock price down more than 50% over the past year. This is not the first time Wilson has publicly criticized the brand since leaving the board in 2015.

The recall of Lululemon's 'Get Low' leggings was triggered by customer feedback regarding the product's sheerness. The company temporarily paused online sales of the collection, though it remained available in physical stores.

Wilson, who founded the company and served as its former CEO, attributed the failure directly to the current board's shortcomings. He stated that the board lacks experience in creative businesses and shows disinterest in product development and quality.

"It is clear that persistent failures like this are born out of this Board's lack of experience in creative businesses, disinterest in product development and quality, and focus on short-term, self-interested priorities."

The founder's criticism extended to the brand's overall direction, claiming Lululemon has 'lost its cool' and 'completely lost its way as a leader in technical apparel'.

This incident marks the second major product recall for Lululemon in recent years. The 'Get Low' recall occurred less than two years after the 'Breezethrough' line was pulled from the market in July 2024 due to complaints about unflattering seam lines.

However, the brand's history with sheer leggings dates back further. In 2013, while Wilson was still on the board, Lululemon recalled 17% of all its pants for being too sheer. At that time, the company blamed a manufacturing error on an incomplete testing protocol.

The frequency of these issues has drawn attention from market analysts. Jefferies analysts noted that the 'Get Low' withdrawal 'underscores ongoing execution issues in its core and raises further concerns about the durability of its innovation engine and premium positioning'.

Chip Wilson's public criticism is part of a broader campaign to influence Lululemon's leadership. Since leaving the board in 2015, he has repeatedly slammed the company's direction, comparing its trajectory to a 'plane crash' and a 'sinking ship'.

In December, Wilson escalated his efforts by launching a proxy fight to shake up the company leadership. As the largest shareholder, he nominated three new board members of his choosing.

The founder's previous criticism targeted the company's succession plan following CEO Calvin McDonald. His continued public pressure highlights the deep divisions between the founder and the current management team.

The financial consequences of these operational failures have been significant. Lululemon's stock price has dropped approximately 10% over the past five days alone.

Looking at a longer timeframe, the company's shares have fallen more than 50% over the past year. This steep decline reflects growing investor concerns about the brand's ability to maintain its premium positioning and innovation leadership in the competitive athleisure market.

The combination of product recalls, public criticism from the founder, and analyst skepticism creates a challenging environment for Lululemon's current leadership as they work to restore confidence.

The sheer leggings controversy represents more than just a product recall—it symbolizes deeper tensions within Lululemon's corporate structure. The public clash between founder and board underscores the challenges of maintaining brand identity and quality standards as the company scales.

With Wilson's proxy fight ongoing and the board facing criticism from both internal and external sources, the coming months will be critical for Lululemon's leadership. The company must address its execution issues while navigating the founder's campaign for board changes.

For consumers and investors alike, the question remains whether Lululemon can regain its status as a leader in technical apparel or if this marks a permanent shift in the brand's trajectory.