Chip Wilson, one in every of Lululemon’s largest shareholders, nominated three director candidates for election on the 2026 annual assembly: former On Holding co-CEO Marc Maurer, former ESPN chief advertising and marketing officer Laura Gentile and former Activision CEO Eric Hirshberg.
Lululemon stated earlier this month that Calvin McDonald will step down as CEO on the finish of January, and that the corporate is looking for his successor. Meanwhile, activist investor Elliott Investment Management has constructed a stake of greater than $1 billion within the firm and has reportedly been working with retail government Jane Nielsen as a possible alternative.
“The recent CEO change announcement was the third total failure of Board oversight with no clear succession plan in place,” Wilson stated in an announcement Monday. “Shareholders have no faith that this Board can select and support the next CEO without input from a Board with stronger product experience.”
The Vancouver-based firm’s development has slowed in current quarters and that development is predicted to proceed, in keeping with analyst estimates. Sales development is close to the bottom degree because the firm went public in 2007 as Lululemon faces fierce competitors from upstarts together with Alo Yoga and Vuori, in addition to knockoffs from lower-priced retailers.
Lululemon is unlikely to achieve its aim to double gross sales to $12.5 billion in 2026 even with a lead over its activewear friends, in keeping with a observe from Poonam Goyal, senior analyst at Bloomberg Intelligence.
The firm’s shares rose 1.3 % at 9:43 a.m. in New York buying and selling. Lululemon inventory has dropped 45 % over the past yr, in contrast with an 18 % improve for the S&P 500 index.
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Why Lululemon’s CEO Is Stepping Down
Slowing development, rising prices and a loud marketing campaign from its outspoken founder set the stage for Calvin McDonald’s exit. It would be the athleisure large’s greatest hope to regain its cultural momentum.