New York, May 27, 2026, 14:07 (EDT)
Lululemon Athletica shares traded higher Wednesday after the company and founder Chip Wilson settled their proxy battle, ending the board dispute a few months ahead of a leadership change as a new CEO steps in.
Lululemon shares traded 3.4% higher at $131.62. The SPDR S&P Retail ETF was up 1.3%. The SPDR S&P 500 ETF eased 0.1%. Nike added 2.1%. On Holding slipped 0.7%. On’s former co-CEO is involved in the Lululemon board agreement.
Lululemon is drawing fresh attention as it deals with trouble in North America, rising competition from Alo and Vuori, and an unfinished leadership change. The stock dropped almost 60% in the last year while the proxy fight dragged on and sales slowed in its core U.S. market, according to Reuters.
Wilson, who started Lululemon back in 1998 and holds around 8.7% of its shares, called for board changes, saying the company moved away from its core products. A proxy fight means trying to collect enough shareholder votes to win board seats or force other moves.
Laura Gentile, who was ESPN’s chief marketing officer, and Marc Maurer, former On co-CEO, are set to join the Lululemon board after the June 25 annual meeting, as part of the new cooperation deal. Lululemon will also add another director with apparel and brand expertise by Oct. 1. Wilson signed on to standstill and non-disparagement clauses for about 18 months, meaning he’ll be limited in public actions and criticism.
Lululemon executive chair Marti Morfitt said the agreement gives a “clear path forward” to incoming CEO Heidi O’Neill and the team. Maurer pointed to “what the consumer wants and needs” as the priority. Wilson said the new board seats were a step for a “product-first vision.” Lululemon
Lululemon named former Nike executive O’Neill as its next CEO, with a board seat starting Sept. 8. O’Neill worked at Nike for over 25 years, last as president of consumer, product and brand, running its global consumer and product engine.
Analysts aren’t calling the deal a fix on its own. David Swartz at Morningstar says Lululemon has plenty of cash for growth, but, “The issue is, what should the investments be?” Brian Nagel at Oppenheimer cited a push for “back to the basics” items and said the brand is “still very portable.” Randal Konik of Jefferies said the lag before O’Neill comes in means rivals like Alo and Vuori have “more time.” Reuters
Lululemon posted a 5% gain in revenue to $11.1 billion for fiscal 2025, but sales in the Americas slipped 1%. International revenue climbed 22%. Gross margin dropped by 2.6 percentage points to 56.6%. Inventories jumped 18% to $1.7 billion. The company finished the year with $1.8 billion in cash and equivalents. Investors are waiting on the next set of results.
Lululemon’s forecast for fiscal 2026 puts revenue between $11.35 billion and $11.50 billion, a jump of 2% to 4%. The company sees diluted EPS coming in at $12.10 to $12.30, below the $13.26 reported for fiscal 2025. The numbers show the turnaround isn’t just about governance.
Lululemon faces its next test next week, with first-quarter fiscal 2026 results due out June 4. The company has scheduled its earnings call for 4:30 p.m. Eastern time.
Truce may just delay problems, not fix lagging sales. If first-quarter numbers land weak in the Americas, or discounting ramps up, or new product rollouts stall, the relief rally in the shares could reverse fast. O’Neill doesn’t take over until September. Rivals are already moving.
