Lululemon’s outspoken founder has downed tools against the company after its appointment of two new board members, bringing the long–running feud to an end.
Wilson has long criticised the direction of the athleisure-wear company, which has seen its stock price and market share decline in the past 18 months. These criticisms have been voiced in a series of letters to shareholders calling for changes to the company’s board, slamming the former members for having “no brand and product experience”.
It is a spat which has also seen the departure of CEO Calvin McDonald and the arrival of former Nike executive Heidi O’Neill. The appointment of O’Neill in April, however, has done little to woo investors and lift Lululemon’s ailing stock price.
But now both Wilson and Lululemon are welcoming the addition of Laura Gentile and Marc Maurer to the board. Gentile, a former chief marketing officer of ESPN, and Maurer, a former co-CEO of On, will begin their roles following the upcoming annual meeting of shareholders.
“On behalf of the board, we are pleased to reach this agreement with Chip Wilson, which allows Lululemon to focus on continuing to strengthen its performance,” said Marti Morfitt, executive chair of Lululemon.
“Lululemon now has a clear path forward for our incoming CEO, Heidi O’Neill, and our leadership team, as we continue to advance our strategies to foster strong brand health, reaccelerate growth, and deliver enhanced value for our shareholders.”
Wilson called the additions a sign of “meaningful” progress atop Lululemon.
“I would like to thank Laura, Marc, and Eric for their willingness to stand for election as directors,” he added.
Retail analyst Neil Saunders, MD of GlobalData, said the news gives Lululemon some “breathing space“.
“It also makes Heidi O’Neill’s job somewhat easier,“ he added. “That said, none of it solves the issue of how to take the brand forward. For that to happen, there needs to be much more innovation around product, a return to discipline in the assortment, and a focus on rebuilding the credibility and status of the brand.
“How Lululemon reaches this destination remains to be seen. But it can only be accomplished by the various parties pulling and working together behind the scenes, as well as in public.“
Wilson and Lululemon agreed to appoint one more director to its board by October 1, stipulating that the appointee will have product and brand expertise in clothing.
