Chip Wilson, the founder and largest shareholder of Lululemon Athletica, has launched a proxy battle that will seek to replace the company’s board of directors. Wilson’s campaign, announced on December 29, 2025, names three independent candidates—Marc Maurer, former co‑CEO of On Running; Laura Gentile, former chief marketing officer at ESPN; and Eric Hirshberg, former CEO of Activision Publishing—to be voted on at the 2026 annual meeting.
The proxy fight comes in the wake of CEO Calvin McDonald’s confirmed departure, effective January 31, 2026. McDonald will remain as senior advisor until March 31, 2026, but his exit marks the third major leadership change in the past five years. Wilson argues that the current board lacks product‑experience leadership and has failed to provide a clear succession plan, calling the CEO transition the “third total failure of board oversight.”
Wilson’s nominees bring deep experience in brand building, marketing, and operational growth. Maurer steered On’s rapid expansion and IPO, Gentile drove ESPN’s global marketing strategy and launched espnW, and Hirshberg led Activision Publishing through a period of significant revenue growth. Wilson believes that these leaders will restore a “product‑first” mindset and help Lululemon regain commercial momentum in a market where the brand’s premium positioning is eroding.
Financially, Lululemon’s Q3 2025 results highlighted margin compression: gross margin fell 290 basis points to 55.6% from 58.6% a year earlier, driven by tariff impacts and higher markdowns. Revenue rose 7% year‑over‑year to $2.6 billion, but comparable sales increased only 1%, reflecting weaker demand in the core U.S. market. The company’s full‑year revenue outlook of $10.962 billion to $11.047 billion represents a modest 4% growth, underscoring the pressure from competitors such as Alo Yoga and Vuori and a shift toward value‑oriented apparel.
Elliott Management, which holds a $1 billion stake in Lululemon, has been actively involved in CEO succession discussions and is pushing for a board that can support a strategic turnaround. Elliott’s stake and its history of influencing board composition add a layer of pressure on Lululemon’s leadership to deliver a credible plan for product innovation and market expansion.
The market has reacted to the proxy fight with a modest, fractional slip in Lululemon’s stock price on the day of the announcement, reflecting investor concern about governance uncertainty. Earlier in the year, a 22% rally in the month before December 21 was driven by a Q3 earnings beat, while the year‑to‑date decline of nearly 50% has been attributed to declining U.S. sales, intense competition, and margin compression. The proxy fight and CEO transition will be closely watched as indicators of whether Lululemon can reverse its performance trajectory.
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