Lululemon’s Fight with Chip Wilson Escalates as Board Calls Company Founder ‘Outdated’

Lululemon Athletica’s (LULU) ongoing fight with Chip Wilson has been kicked up a notch after the board of directors publicly criticized the company’s founder.

Wilson, who founded Lululemon in 1998, has been a vocal critic of the Canadian company for years, going so far as to take out advertisements against the board of director’s decisions. But now, the Vancouver-based athletic wear maker is fighting back, writing in a letter to shareholders that Wilson has “outdated perspectives.”

Lululemon’s board of directors adds in the shareholder letter that Wilson’s ideas to improve the company will derail its current turnaround strategy that includes a new CEO. The shareholder letter is Lululemon’s first public response to Wilson since he launched a proxy battle against the company in late 2025. It also comes after settlement talks between Wilson and Lululemon fell apart over the past week.

Lululemon’s New CEO

In recent months, Wilson has publicly criticized Lululemon’s board of directors, as well as the hiring of new CEO Heidi O’Neill, who is slated to takeover later this year. Lululemon’s board is urging shareholders to approve O’Neill as the new CEO, as well as new board nominees, at the upcoming annual meeting on June 25.

Lululemon’s business has struggled in recent years with declining sales, product misfires, and tariffs. The company also faces growing competition in the athleisure space. Wilson stepped down as CEO in 2005 but stayed on as chairman of the board until 2013. He remains Lululemon’s largest individual shareholder.

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.