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Lululemon Faces Founder-Led Board Challenge, CEO Search

Story Highlights
  • Lululemon is confronting a potential proxy fight after founder Chip Wilson moved to nominate directors and push for board declassification at the 2026 meeting.
  • The board touts a refreshed, growth-focused governance structure, strong financial performance, and an ongoing CEO search as it positions the company for its next phase while reviewing Wilson’s nominees.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Lululemon Faces Founder-Led Board Challenge, CEO Search

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Lululemon Athletica ( (LULU) ) has shared an update.

On December 29, 2025, Lululemon Athletica responded to a notice from founder Dennis “Chip” Wilson, who has disclosed plans to nominate three director candidates and submit a proposal to declassify the board at the company’s 2026 annual meeting, signaling a potential proxy battle. The board stated it had long engaged with Wilson and had sought his nominees’ names earlier to avoid a costly, distracting contest, and now plans to evaluate his candidates under its governance process while emphasizing that shareholders need not take any action yet. Lululemon highlighted its board refreshment, noting that over a third of directors joined in the last four years, and underscored its decade-long growth under current oversight, with revenues rising from $2.1 billion in fiscal 2015 to an expected $11.0 billion in fiscal 2025, a near sixfold increase in operating income, and more than $5.5 billion returned to shareholders via buybacks. The company also disclosed that it has launched a search for a new CEO to lead its next phase of growth and transformation, stressing its continued industry leadership since Wilson’s departure a decade ago and its commitment to acting in the best interests of all shareholders as it prepares recommendations ahead of the 2026 annual meeting.

The most recent analyst rating on (LULU) stock is a Hold with a $215.00 price target. To see the full list of analyst forecasts on Lululemon Athletica stock, see the LULU Stock Forecast page.

Spark’s Take on LULU Stock

According to Spark, TipRanks’ AI Analyst, LULU is a Outperform.

Lululemon Athletica’s strong financial performance and strategic focus on international expansion and digital growth are significant strengths. However, challenges in the U.S. market, increased costs, and declining gross margins pose risks. The company’s valuation is attractive, but technical indicators suggest caution due to overbought conditions.

To see Spark’s full report on LULU stock, click here.

More about Lululemon Athletica

Lululemon Athletica is a technical athletic apparel, footwear and accessories company focused on yoga, running, training and related activities, offering performance-oriented products and experiences. The Vancouver-based retailer collaborates closely with athletes and local communities worldwide to drive fabric innovation and functional design, positioning itself as a premium global brand in the athletic and wellness market.

Average Trading Volume: 4,396,875

Technical Sentiment Signal: Sell

Current Market Cap: $25.58B

For detailed information about LULU stock, go to TipRanks’ Stock Analysis page.

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