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After settlement talks collapsed, the athleisure giant issued its first major public statement pushing back hard against Wilson's board nominations, and the man himself.
In a sharply worded letter to shareholders published Monday, the Vancouver-based athleticwear brand broke its public silence on founder Chip Wilson, accusing him of harboring "outdated perspectives" and "troubling conflicts of interest" that it says threaten to derail the company's recovery at a critical moment. The letter marks Lululemon's first significant public rebuttal since Wilson's proxy campaign intensified late last year.
The timing is no accident. Settlement negotiations between the two sides fell apart last week after Wilson responded to Lululemon's final offer, which included appointing two of his nominees following the annual meeting, by raising his demands, including seeking the right to replace directors if his picks departed the board and full reimbursement of his campaign costs. The company walked away, and the letter followed.
"His vision for Lululemon appears to be frozen in time, viewing the brand through the lens of a founder away from any operating responsibility for nearly 15 years."
Wilson, who holds an 8.97% stake in the company he founded in 1998, has nominated three outsiders for the board, former ESPN marketing chief Laura Gentile, ex-Activision CEO Eric Hirshberg, and former On co-CEO Marc Maurer.
His argument: Lululemon has sacrificed creative brilliance for operational efficiency, and only fresh, visionary leadership can reverse its slide. Lululemon's shares have fallen nearly 43% this year, weighed down by weak consumer demand in the Americas, rising tariffs, and stiff competition from rivals including Vuori and Alo Yoga, brands Wilson has openly advised, a detail the company was quick to flag.
Lululemon's board fired back, calling its own nominees, former Levi Strauss CEO Chip Bergh, Unilever's former Chief Growth Officer Esi Eggleston Bracey, and ex-Gap finance chief Teri List,
"vastly superior," and warning that electing any of Wilson's picks would strip the board of critical financial and governance expertise. It also highlighted that Maurer retains a personal stake in On worth tens of millions, representing a direct conflict of interest.
The letter also defended incoming CEO Heidi O'Neill, a nearly 30-year Nike veteran set to take the helm in September, whom Wilson had dismissed as insufficiently creative. Shareholders will cast their votes at the annual meeting on June 25.
