Lululemon founder calls for board overhaul at struggling fitness brand

Keep knowledgeable with free updatesSimply signal as much as the Retail & Client trade myFT Digest — delivered on to your inbox.Lululemon founder and main shareholder Chip Wilson has nominated three new board administrators to supervise the appointment of a brand new chief govt on the struggling activewear maker, which has additionally been focused by activist investor Elliott Administration.On Monday, Wilson, who owns an 8.4 per cent stake within the firm, known as for the appointments of former On Working co-CEO Marc Maurer, ex-ESPN advertising and marketing chief Laura Gentile and former Activision chief Eric Hirshberg to Lululemon’s board.“Lululemon wants visionary inventive management to thrive. The straightforward reality is that the present board lacks these abilities and, in consequence, Lululemon is unable to win again the boldness of its crucial stakeholders and regain business momentum,” Wilson mentioned on Monday.The Canadian yoga model has endured a dismal 2025. US tariffs, intensifying competitors from new entrants and subdued shopper spending have weighed on the corporate, notably within the North American market. Manufacturers comparable to Alo, Fabletics, Vuori and Kim Kardashian’s Skims have chipped away on the Canadian firm’s dominance within the high-end section.Shares in Lululemon have fallen about 45 per cent over the previous yr, valuing the maker of leggings and sports activities bras at about $24.8bn. The corporate introduced this month that it had begun a search course of to exchange chief govt Calvin McDonald. Lululemon’s struggles have attracted Elliott, which has taken a stake value greater than $1bn within the firm, based on an individual with data of the state of affairs. The activist investor has been working with former Ralph Lauren govt Jane Nielsen and views her as a possible future chief govt of Lululemon as a consequence of her historical past of remodeling manufacturers, the particular person mentioned.Elliott’s marketing campaign is separate from Wilson’s and the 2 events will not be working collectively, mentioned an individual acquainted with Wilson’s considering.Wilson, who based the corporate in 1998, has taken to often sniping at Lululemon’s executives in recent times, criticising them for with the ability to “converse Wall Avenue” however missing a “product-driven” method. In his newest public criticism, Wilson hit out on the means the board, which has been chaired by Marti Morfitt since March 2022, had dealt with succession planning. McDonald, who had sought to diversify the model from yoga by pushing into golf and tennis, and appeal to extra male prospects, is stepping down on the finish of January. Wilson mentioned Lululemon’s shareholders “don’t have any religion” within the capacity of its sitting board administrators to “choose and help” the following chief govt.Appointing new administrators was “the one method to restore shareholder confidence and set Lululemon again on the trail to progress, product innovation and premium high quality”, he mentioned.Lululemon didn’t instantly reply to a request for remark. Elliott declined to remark.