lululemon is pushing back on founder Chip Wilson’s latest move to influence its boardroom. He has formally notified the company of his intent to nominate three director candidates for election at the 2026 Annual Meeting of Shareholders. The board is signaling stability and confidence in its strategy, pointing to a decade of strong growth. It will evaluate Mr. Wilson’s nominees “in due course.”
Board responds to Chip Wilson’s nominations
The Lululemon Board and leadership have been committed to engaging extensively and in good faith with their founder for many years to hear his views. They also share the company’s strategy. This includes recent talks where he indicated his plan to nominate directors. The Board requested the names of his proposed nominees in advance to assess their backgrounds. This was to avoid a costly proxy battle. However, Mr. Wilson declined to continue discussions at that stage.
Now that the formal notice has been submitted, the Board will review the candidates under its standard governance process. They will make a recommendation to shareholders ahead of the 2026 meeting. For now, Lululemon is stressing that shareholders do not need to take any action. More details will appear in its definitive proxy statement to be filed with the SEC.
Ten years of growth under the current board
To frame the coming contest, Lululemon highlights what it calls one of retail’s strongest growth stories over the last 10 years. Company revenues have climbed by nearly $9 billion, from $2.1 billion in fiscal 2015 to about $11.0 billion expected in fiscal 2025 based on company guidance. Over the same period, income from operations has grown by nearly six times. This supports what the board calls “long-term, sustainable growth.”
This performance has generated significant cash flow. It enabled Lululemon to invest in innovation and international expansion while returning capital to investors. These returns took the form of cumulative share repurchases of more than $5.5 billion since fiscal 2015. The company also notes that over one-third of its directors have joined within the past four years. They argue that the board already combines refreshment with experience.
CEO search and strategic priorities
Even as it defends its record, the Board acknowledges there is more value to unlock, especially in the U.S. business. They continue to see strong momentum internationally. To support the next phase, the Board has launched a comprehensive search for Lululemon’s next CEO. They are seeking a leader with a proven track record of guiding companies through growth and transformation.
The aim is to find someone who can build on the existing brand strength. They should also bring a fresh perspective to product, community, and global expansion strategies. In the release, the company underscores that Mr. Wilson has not been involved with Lululemon for roughly 10 years. This emphasizes that the current trajectory has been achieved under independent leadership and an evolving board.
What shareholders should expect next
For now, Lululemon is keeping its message simple: shareholders should sit tight until the company files its 2026 proxy materials. The definitive proxy statement on Schedule 14A, along with the company’s WHITE proxy card, will outline the Board’s formal position on Mr. Wilson’s nominees and provide detailed information about all participants in the solicitation. The company has retained J.P. Morgan as financial advisor, Sidley Austin LLP as legal advisor, and Joele Frank, Wilkinson Brimmer Katcher for strategic communications as it prepares for a potential proxy contest. With founder activism re-entering the picture just as the company undertakes a CEO search, Lululemon’s governance decisions in 2026 will be closely watched across the retail and investor community.
