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Lululemon's See-Through Crisis: Founder Slams Board
23 Jan
Summary
- Lululemon's founder criticized a product failure as 'total operational failure'.
- Activist investor Elliott Management is reportedly pushing for a new CEO.
- The company is facing slowing growth and a stock decline of nearly half.
Lululemon is grappling with significant challenges, including slowing growth and a near 50% stock value drop over the last 12 months. Adding to the pressure, founder Chip Wilson has publicly criticized the company's board following a product mishap.
Wilson labeled the recent issue with 'Get Low' leggings, which were found to be sheer, a "total operational failure." The company has since updated product guidance for shoppers in North America.
These internal issues coincide with external activist battles. Elliott Investment Management has reportedly taken a substantial stake and is seeking to influence leadership, possibly by promoting a new CEO candidate.
The company is also preparing for leadership transition as outgoing CEO Calvin McDonald's final days approach, leaving Lululemon with two interim CEOs.
