Lululemon shareholders have voted to seat three board directors backed by company management, bringing a bitter governance battle with the brand’s founder to a close and giving the company’s next chief executive a cleaner slate heading into her tenure.
The directors approved in Thursday’s vote include former Levi Strauss chief Chip Bergh, Unilever marketing executive Esi Eggleston Bracey, and experienced finance leader Teri List. The trio brings expertise in brand development and corporate oversight to the Vancouver-based company as it prepares for a significant reset.
On Friday, the company also announced that two nominees put forward by founder Chip Wilson — Marc Maurer and Laura Gentile — have been appointed as independent directors, bringing the total board size to 11. A third mutually agreed-upon director is expected to join by October 1, in line with the truce the two sides reached last month.
Wilson, who holds roughly 8.6% of the company’s shares, has been publicly at odds with Lululemon’s leadership since December, a conflict that weighed on the stock and laid bare deep disagreements over strategy, leadership, and the brand’s future direction. As part of the settlement, Wilson has agreed to hold off on public criticism for 18 months.
The resolution gives former Nike executive Heidi O’Neill more room to work with as she steps into the CEO role in September.
The yoga-and-athleisure giant, known for its high-end leggings and workout wear, is attempting a comeback at a time when newer rivals — including Alo Yoga and Vuori — are aggressively competing for the same customers. The company’s stock has lost roughly half its value over the past year.
Earlier this month, Lululemon projected its first quarterly sales decline since the pandemic, while also warning of tighter margins due to heavier discounting and cost pressures tied to tariffs.
Last year, activist investor Elliott Investment Management built a stake valued at approximately $1 billion and pushed for leadership and strategic changes, including backing a former Ralph Lauren executive named Jane Nielsen as a potential CEO candidate. Elliott has not publicly addressed Lululemon’s settlement with Wilson.
Industry analysts say the company needs to win back its most loyal shoppers by refreshing its product lineup and sharpening how it presents itself in a more crowded marketplace.
Eyes are also on Lululemon’s $1.8 billion cash reserve and what the company plans to do with it. Observers widely expect the funds could be directed toward entering new product categories, upgrading retail locations, or speeding up growth in international markets.
