• Wilson alleged that the board destroyed the brand value he had built over decades and steered the company in a direction he had not envisioned.
• He highlighted the firm’s partnership with Disney and said the board failed to understand the brand. 
• Wilson urged that stockholders vote for his three independent nominees at the upcoming annual meeting. 

Chip Wilson, the founder of the popular North American athleisure brand Lululemon Athletica Inc. (LULU), lambasted the board of directors in fresh criticism through a shareholder letter.

Wilson criticized their decision to hire Nike veteran Heidi O’Neill as the new CEO, claiming they lack the skill set to bring in a leader who can capitalize on the latest trends and innovate.

“The board's challenges are rooted in a persistent misalignment of governance that perpetuates the cycle of poor leadership selection and talent flight, furthering strategic confusion,” Wilson stated.

In the latest letter, Wilson, who is among the largest stockholders in the company, alleged that they destroyed the brand value he had built over decades and steered the company in a direction he had not envisioned.

“I genuinely hope that Heidi is the right person for Lululemon, but a near 30-year veteran of NIKE, Inc., is not the symbol of transformative, creative-first leadership that can instill shareholder confidence in today's world,” Wilson said.

O’Neill is expected to join the company on September 8.

Wilson also urged that stockholders vote for his three independent nominees, who were announced in December, at the upcoming annual meeting. 

“Now more than ever, the next CEO needs brand and product support on the board to help attract leading talent and deliver a turnaround. Unfortunately for Heidi and shareholders, this support is clearly not currently represented on the board.”

Partnership With Disney

Wilson also highlighted the firm’s partnership with Walt Disney Co. (DIS) and said the board failed to understand the brand. He blamed them for shareholders losing tens of billions of dollars, as the stock price lost nearly two-thirds of its value over the years.

“Disney is a mass-market brand that is not at all aligned with the Lululemon brand,” Wilson wrote. “Most importantly, this collaboration drove away inspiring customers, inspiring designers, and inspiring store employees. Lululemon is now left with outlying customers who follow generic athletic brands.”

How Did Retail Traders React?

On Stocktwits, retail sentiment about LULU remained ‘extremely bullish’ amid ‘extremely high’ messaging volumes over the last 24 hours.

One user on the platform said this “isn’t the same easy growth story it was 3–5 years ago.”

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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