Chip Wilson pushing for leadership change on Lululemon board

Lululemon Athletica’s founder Chip Wilson has launched a proxy fight for a board shakeup.

Chip Wilson has launched a proxy fight at Lululemon Athletica Inc. as he seeks changes in leadership and strategy at the company he founded.

Wilson said in a statement Monday that he has nominated three director candidates for Lululemon’s board who will help redefine the company and begin its next chapter.

“Lululemon needs visionary creative leadership to thrive. The simple truth is that the current board lacks these skills.”

His nominations come after the company announced on Dec. 11 that current CEO Calvin McDonald would step down from his role effective Jan. 31, with the search for a new leader underway.

McDonald had been at the helm of Vancouver-based Lululemon for seven years and will serve as a senior adviser through March 31 of next year.

Wilson, who remains a large shareholder in the company, said the CEO change was a third “total failure” of board oversight with no clear succession plan in place. He has said the search for a replacement should be led by new, independent directors.

Lululemon said in response Monday that it has a highly engaged and experienced board that is focused on finding a candidate with experience leading companies through periods of transformation. 

The company noted that while Wilson hasn’t been involved with the company for a decade, the board has engaged extensively with him to understand his perspective over the years, including on the direction of the board.

“In the interest of avoiding a costly and distracting proxy fight, the board requested from Mr. Wilson the names of his director nominees to evaluate their qualifications and backgrounds, but Mr. Wilson declined to engage further,” the company’s board said in a statement. 

Lululemon said the board would evaluate his nominees in due course. 

Wilson’s three candidates include Marc Maurer, former co-chief executive of On Holding AG, Laura Gentile, former chief marketing officer of ESPN and Eric Hirshberg, former chief executive officer of Activision.

His nominations come as another major shareholder also pushes for its leadership vision at the company.

Activist investor Elliott Management, which has built a stake of more than US$1 billion in Lululemon, is pushing for the struggling retailer to name former Ralph Lauren executive Jane Nielsen as its next chief executive.

A source familiar with the situation confirmed media reports that Elliott has been working with Nielsen, a former chief financial officer and chief operating officer at Ralph Lauren, for the past few months to support her candidacy.

Nielsen, who spent nine years at the fashion brand before departing earlier this year, also previously served as executive vice-president and chief financial officer at Coach.

The source said Nielsen’s experience at those two companies makes her well-positioned to turn things around at Lululemon, noting her track record for revitalizing iconic brands.

During the third quarter, Lululemon said revenue fell in its U.S. and Canadian businesses by three per cent and one per cent, respectively, but saw a 46 per cent rise in its revenue from China.

In September, while reporting its second-quarter results, Lululemon updated its guidance for 2025 with an estimated reduction in gross profit. It said the move reflected the impact of tariffs and the removal of the de minimis exemption, which had allowed packages worth US$800 or less to ship south of the border without duties.

Shares of Lululemon, which trade on the Nasdaq index, were up US$3.57 at US$212.54 on Monday.

This report by The Canadian Press was first published Dec. 29, 2025.