Lululemon Athletica Inc (NASDAQ:LULU) is facing a renewed proxy challenge from its founder and second-largest shareholder, Chip Wilson, as the apparel maker navigates a leadership transition and signs of slowing momentum.
According to a Wall Street Journal report, Wilson formally launched a proxy fight seeking changes to Lululemon’s board of directors, days after the company announced that CEO Calvin McDonald would step down in January 2026.
According to the report, Wilson has nominated three independent candidates to stand for election to Lululemon’s board: Marc Maurer, former co-CEO of Swiss athletic footwear brand On Running; Laura Gentile, former chief marketing officer at ESPN; and Eric Hirshberg, former chief executive of video game publisher Activision.
Wilson, who founded Lululemon in 1998, has previously been vocal in his criticism of the company’s leadership and strategic decisions since stepping back from day-to-day operations.
In a statement, Wilson criticized the board’s oversight and handling of executive succession. “The recent CEO change announcement was the third total failure of board oversight with no clear succession plan in place,” Wilson said, adding that shareholders lack confidence in the current board’s ability to select and support the next chief executive without additional input from directors with stronger product experience.
Lululemon announced earlier this month that McDonald would depart in January, becoming the latest senior executive to exit a global consumer brand amid shifting demand patterns and increased competition. The company has encountered increased competition from newer, fast-growing brands such as Alo Yoga and Vuori, particularly among younger and higher-income consumers.
In a statement on Monday, the company told shareholders they do not need to take action after Wilson submitted his nominations for three directors for the company’s 2026 Annual Meeting. The company said its board will review the candidates in line with its governance process.
Lululemon highlighted its experienced board, recent growth from $2.1 billion in revenue in 2015 to an expected $11.0 billion in 2025, and its ongoing search for a new CEO to support future growth. A formal recommendation on Wilson’s nominations will be included in the company’s proxy statement ahead of the meeting.
Shares of Lululemon are down almost 45% in the year to date.
*Updated with Lululemon's statement*