In a development highlighting internal strife at Lululemon Athletica Inc., Chip Wilson, the company’s founder and second-largest shareholder, has once again openly criticized the brand and launched a campaign to alter its board of directors. This comes shortly after the company disclosed the departure of CEO Calvin McDonald, concluding a turbulent seven-year period during which Lululemon struggled to maintain its competitive edge.
Wilson, who controversially left the board in 2015, officially announced on Monday that he has nominated three new candidates for the board. These nominees include former executives from prestigious companies such as ESPN and Activision, alongside Marc Maurer, the former co-CEO of On, Lululemon’s upscale Swiss competitor backed by tennis star Roger Federer. The nominations symbolize an aggressive effort by Wilson to redefine the company’s leadership and direction amid a challenging market landscape.
According to statements from Wilson, the current board lacks the "visionary creative leadership" required for Lululemon to thrive in a highly competitive athleisure market. He criticized the existing directors, contending they are ill-equipped to navigate the company toward renewed growth and brand strength. Wilson asserted that the inclusion of new board members is essential to initiating a fresh chapter of success for the brand.
The timing of this campaign is particularly significant. Lululemon’s stock has plummeted by over 40% so far in 2025, coinciding with a period during which the company has struggled to fend off intensified competition. Wilson’s disapproval extends to the succession planning related to CEO McDonald’s exit. He described the announcement as a "total failure of board oversight," emphasizing that no clear succession strategy was in place, which he believes has further eroded shareholder confidence.
Lululemon’s Vancouver-based corporate office has responded to Wilson’s nominations by expressing that these will be reviewed and considered during the upcoming annual board meeting. Meanwhile, Wilson has made clear that his intention is not to seek a return to the board personally but to instill "genuine creative leadership" that can reinvigorate the brand’s long-term prospects.
A notable point of emphasis in Wilson’s campaign is the nomination of Marc Maurer. Maurer’s background as co-CEO of On—an aviator in premium footwear and apparel—positions him as a strategic addition capable of bringing fresh insight from a direct competitor. On’s success, backed significantly by Roger Federer’s endorsement and superior brand appeal, has contributed to increased pressure on Lululemon, especially in their key North American market.
Retail analyst Neil Saunders, Managing Director at GlobalData, describes Lululemon’s current predicament as one aggravated by mounting competition, a weakening athleisure market, and diminishing product differentiation. Saunders notes that recent product lines lack the distinctiveness and quality traditionally associated with the brand, with some moves toward heavily branded, less refined apparel that diverges from Lululemon’s hallmark finesse.
Reflecting these sentiments, Saunders characterized the current leadership as having "run out of steam," highlighting the urgency for new management to reverse downward trends. He acknowledged the balance of experience among Wilson’s nominees but underscored that securing the right CEO remains the critical hurdle for the company’s turnaround.
Further complicating matters, activist investment firm Elliott Investment Management has acquired a $1 billion stake in Lululemon. The firm is actively challenging existing management and advocating for the appointment of Jane Nielsen, a former Ralph Lauren executive, as the next CEO. This sets up a multifaceted power struggle within the company’s governance, with major shareholders pressing for substantive change.
Wilson’s criticisms of Lululemon extend beyond board composition and CEO selection. Historically, he has been vocal against various company initiatives, including the brand's diversity and inclusion efforts last year. He has also reflected on his own diminished influence since the company’s initial public offering, stating in a 2018 interview that bureaucratic structures have restricted his ability to guide the company.
The convergence of leadership departures, shareholder activism, and strategic repositioning efforts places Lululemon at a pivotal juncture. The company must reconcile internal disputes while navigating an increasingly competitive and evolving athleisure apparel sector. How the board and management respond to these challenges will likely shape Lululemon’s trajectory in the near term.