Lululemon responds to founder Chip Wilson’s proxy challenge amid global CEO search

Lululemon Athletica Inc. has formally addressed a notice from its founder, Chip Wilson, regarding his intent to nominate three director candidates for election at the company’s 2026 annual meeting of shareholders.

The announcement marks a significant escalation in tensions between the athleisure giant and its founder, who has been publicly critical of the company’s current strategic direction. In a statement released Monday, Lululemon’s board of directors confirmed that while they had engaged with Wilson for several years to understand his perspectives, he recently declined to provide the names of his nominees for prior evaluation, opting instead for a public filing. The board maintains that it will evaluate the candidates—reported to include former executives from On Holding AG, ESPN, and Activision—in accordance with standard governance protocols.

The proxy challenge arrives at a critical juncture for the retailer, following the December 11 announcement that CEO Calvin McDonald will step down effective January 31, 2026. As the board initiates a comprehensive global search for a successor, leadership has emphasized the company's decade-long growth trajectory as evidence of its current effectiveness.

Since fiscal 2015, Lululemon has grown its revenue from 2.1 billion dollars to an expected 11 billion dollars by the end of fiscal 2025, with operating income increasing nearly sixfold. The board highlighted that this financial strength has allowed for more than 5.5 billion dollars in share repurchases, reinforcing their commitment to long-term shareholder value despite recent market volatility and increased competition from rivals like Alo Yoga and Vuori.

Lululemon’s leadership remains focused on a "transformation-ready" future, citing a refreshed board where over one-third of members have joined within the last four years. While acknowledging the need to capture further opportunities in the U.S. market, the company pointed to continued international strength as a cornerstone of its "compelling growth story."

For now, shareholders are advised that no immediate action is required. The Board expects to provide a formal recommendation regarding Wilson’s nominees in a definitive proxy statement ahead of the 2026 annual meeting, as the company continues to navigate both this internal governance challenge and external pressure from activist investors like Elliott Investment Management.