Lululemon Athletica (LULU) is shaking up its board of directors as a proxy battle with company founder Chip Wilson approaches.
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The Canadian athletic apparel retailer has named Esi Eggleston Bracey to its board of directors, effective immediately. Bracey was most recently the chief marketing officer at Unilever (UL), where she’s also been the president of the company’s U.S. division.
Additionally, Bracey has has sat on the boards of directors at retailer Williams-Sonoma (WSM) and theme park operator Six Flags Entertainment (FUN). Her appointment is the latest in a series of changes to Lululemon’s leadership amid ongoing struggles at the Vancouver-based company.
The Coming Proxy Battle
A week ago, Lululemon announced that former Nike (NKE) executive Heidi O’Neill will become the retailer’s new CEO and also join the board of directors this September. The changes come as Lululemon grapples with declining sales and a slumping share price.
Lululemon’s founder Chip Wilson and activist investor Elliott Management have been pushing publicly for the company to appoint a new CEO and board members as they call for improvements to the retailer’s lagging share price, which is down 46% over the last 12 months.
Lululemon is facing an upcoming proxy battle with Wilson, who put forward his own personal choices for the company’s next CEO and board members, and who wants the changes put to a shareholder vote.
Is LULU Stock a Buy?
Lululemon Athletica’s stock has a consensus Hold rating among 20 Wall Street analysts. That rating is based on one Buy and 19 Hold recommendations issued in the last three months. The average LULU price target of $178.38 implies 23% upside from current levels.
