Lululemon issued a letter to shareholders on Monday, its first public response to Wilson’s proxy battle that intensified last year. The letter criticizes Wilson’s attempts to regain influence over the company and warns that his nominees for the board are less qualified.
The athleisure company attempted to resolve the proxy contest with Wilson last week, offering to appoint two of his nominees after the annual meeting and create an advisory brand product council including Wilson’s third nominee. However, Wilson increased his demands, leading to the breakdown of settlement talks.
Lululemon is now urging shareholders to vote in favor of its strategy, incoming CEO Heidi O'Neill, and board nominees, arguing that they are “vastly superior” to Wilson’s picks. The company warns that electing any of Wilson’s nominees would significantly degrade the board’s experience and expertise.
New CEO Steps Into Lululemon Fight
Lululemon highlighted O'Neill's leadership experience at Nike, noting that she helped steer the apparel business through rapid growth, shortened product lead times, and repositioned the brand. The company also credited her with building Nike's women's division into a multi-billion-dollar business and driving major digital transformation efforts during a period when digital commerce sales grew by more than 65%.
Wilson Pushes Lululemon Shake-Up
LULU Price Action: On a year-to-date basis, Lululemon stock declined 43.48%. On Friday, it fell 1.59% to close at $119.14.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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