Canadian food giant Lululemon is locked in a public battle with its founder, Chip Wilson, over who should fill seats on its board. The company is currently being led by two interim CEOs until Heidi O’Neill, a former Nike executive, takes over in September. Wilson, who founded Lululemon in 1998 and stepped down in 2015 after years of controversy, remains the largest shareholder and retains significant voting power at the nearly $14 billion company. He is now targeting candidates from companies including ESPN, Activision and sneaker brand On, while Lululemon’s current leadership is backing nominees from Levi Strauss, Unilever and Gap.
The dispute has escalated in recent days. In an April 29 letter, Wilson said the current board and nominees “lack the skills to manage a company whose core values are based on innovation and culture.”
Lululemon responded on May 18, saying “Wilson’s actions were damaging to the brand” and accusing him of holding “outdated ideas.” Appointing his nominees, the company added, “would condone his misguided views.”
The conflict comes as Lululemon’s business has weakened, particularly in the US, where rivals such as ALO Yoga and Vuori have gained strength. Revenue in North America fell 4 percent in its most recent fiscal quarter ended in January, while gross profit fell 8 percent. The company’s stock has lost nearly two-thirds of its value since the start of 2025.
Leadership changes have added to the uncertainty. Chief executive Calvin McDonald is stepping down in December 2025 after more than seven years, with chief financial officer Meghan Frank and chief commercial officer André Maestrini serving as interim CEOs. In April, Lululemon named Heidi O’Neill, former Nike president of consumer, product and brand, as the next CEO, effective September 8.
Wilson criticized that decision, writing on LinkedIn that the company’s strategy is “still disconnected from Lululemon” and accused the board of trying to replicate “low-end, mass-market athletic retailers.”
The rift between Wilson and the company began a long time ago. He served as CEO until 2005, later serving as chairman before leaving the board in 2015. He now owns about 8.6 percent of the company.
Wilson has long weighed in on the controversies surrounding the brand and its customers. He once said that he chose the name Lululemon because Japanese people had trouble pronouncing the letter “L,” calling it “funny to watch them try.” He also said that the company’s leggings “don’t work for certain women’s bodies.”
His criticism of Lululemon intensified after his departure. In a 2016 open letter, he said the company was “lost” and lagging behind competitors in the market it helped create. In 2024, he pointed out that the company’s diversification efforts make it more like “Gap, everything to everyone,” and last year he said the brand was losing its “coolness.”
“Chip Wilson is still tied to the real identity of the company in people’s minds,” Kaveh Vahdat, founder of marketing agency RiseOpp, told the Observer. “When a product goes bad, the founder gets back to work because people associate him with a time when the company felt sharp and culturally defined.”
In March, Wilson launched a campaign website to promote board candidates, saying the effort aims to “secure the company’s future” and ensure its “best years remain” with the right strategic changes.
Nominees include former On co-CEO Marc Maurer, former ESPN CEO Laura Gentile, and former Activision CEO Eric Hirshberg.
Lululemon, meanwhile, currently supports three directors: former Levi Strauss CEO Chip Bergh, former Unilever CEO Eggleston Bracey, and former Gap CFO Teri List. Other board members include executives from firms such as River Rock Partners, Colgate-Palmolive, Apple, JPMorgan Chase and Advent equity firm.
