lululemon Founder Calls for Board Change

Chip Wilson, Founder of lululemon athletica and one of lululemon's largest shareholders, released a letter to lululemon shareholders which stated, in part: "Shareholders of lululemon: In support of all shareholders, I am pursuing a campaign to catalyze a quantum of change that is sorely needed at lululemon. To effect that change, I have pursued private, constructive dialogues with the lululemon Board of Directors for the past few months. My attempts toward a sensible solution have not been reciprocated. The heart of the issue is a disconnect between the company's creative engine and the Board's strategic oversight of how nonquantifiable power of brand and product translates to brand strength, margin durability, and long-term shareholder value. Brand, creative and marketing skills are missing from the boardroom. These problems are fixable, but meaningful change must happen fast. The stock has lost nearly half of its value over the past five years, costing lululemon shareholders roughly $20 billion. Already, there is clear, significant and consistent frustration with this Board as multiple directors have already lost the support of more than 20% of shareholders1 and there is an existing crisis to hire a permanent CEO (caused by the third failed succession planning process). It should be overwhelmingly clear that shareholders expect this Board to fulfill its fiduciary duty and act with urgency, clarity and humility. Unfortunately, we have seen none of this in our engagement. In the spirit of transparency, I am providing an update to all shareholders on our conversations to date, outlining our concerns about the lululemon Board's actions and urging all shareholders to take action to prevent further value destruction."