Lululemon responds to blast from founder Chip Wilson

Lululemon Athletica faces renewed scrutiny from founder Chip Wilson, who criticized the company's management in a Wall Street Journal ad, comparing its decline to a "plane crash" and a "sinking ship. " Wilson, who left the board in 2015, accused the current leadership of prioritizing short-term financial gains over product innovation, leading to a 53% drop in share price this year. The company, which closed at $173. 48, has lost over 66% of its market capitalization from its peak in December 2023. In response, Lululemon defended its leadership, stating that Wilson has not been involved in decision-making for nearly a decade.

Wilson also criticized the acquisition of the fitness company Mirror and a collaboration with Disney, claiming these moves undermined the brand's integrity. He outlined a strategy to refocus on product and brand values, arguing that a lack of innovative leadership has hurt the company's appeal. Despite Wilson's concerns, Lululemon asserts it maintains regular communication with shareholders to ensure alignment with their interests. The ongoing conflict highlights the challenges facing the company as it navigates a competitive retail landscape.