-- (Updates with lululemon's reply in the fifth paragraph.)
Lululemon Athletica (LULU) founder and largest active shareholder, Chip Wilson, on Wednesday sent a letter to the company's shareholders questioning the appointment of Heidi O'Neill as chief executive.
He also urged shareholders to vote for his three board nominees at the company's 2026 annual meeting, which will "help restore lululemon's once bold vision and product-centered brand," the letter said.
Wilson said O'Neill's long career at Nike (NKE) does not reflect the type of "creative-first" leadership he thinks lululemon needs. He also said the board should have anticipated investor concerns about her appointment.
He added that delaying O'Neill's start exposes her to months of public scrutiny and said the ongoing proxy battle raises broader questions about whether the CEO search process should be reviewed by a new board.
Lululemon toldits board is "highly experienced" and "well equipped" to oversee the company's strategy, leadership and board composition through its ongoing refreshment process. The company said it made good-faith efforts to reach an agreement with founder Chip Wilson but said he delayed meetings with his nominees, repeatedly revised his demands and has continued to criticize the company publicly during discussions.
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