What product issue caused criticism for Lululemon?

Lululemon faced criticism for its 'Get Low' leggings, which customers found to be too sheer and not 'squat-proof'.

How has Lululemon founder Chip Wilson reacted to recent issues?

Chip Wilson called the recent product failure a 'total operational failure' and blamed the company's board.

What activist pressure is Lululemon currently facing?

Elliott Investment Management has taken a large stake and is reportedly pushing for a new CEO candidate.

Home / Business and Economy / Lululemon's See-Through Crisis: Founder Slams Board

Lululemon's See-Through Crisis: Founder Slams Board

23 Jan

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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's See-Through Crisis: Founder Slams Board

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.

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