Lululemon outperforms, founder calls for reform
Lululemon beat its FY25 revenue and earnings guidance, yet the founder renewed calls for immediate boardroom reform — a clear example of strong performance not inoculating a board from activist pressure. That split highlights how founder and shareholder expectations can drive governance change even when financials are solid. (just-style.com)
lululemon reported fourth-quarter net revenue of $3.6 billion and diluted EPS of $5.01 for fiscal Q4 2025, and full‑year net revenue of $11.1 billion with diluted EPS of $13.26. (corporate.lululemon.com) The quarter showed regional divergence: Americas net revenue fell 4% while international net revenue rose 17%, and the company disclosed an 8% drop in gross profit to $2.0 billion with gross margin down 550 basis points. (corporate.lululemon.com) Founder Chip Wilson formalized a proxy campaign in a Feb. 27 shareholder letter that nominated three independent director candidates, proposed immediate board declassification, and said the stock “lost nearly half of its value”—about $20 billion—over five years. (stocktitan.net) Wilson’s filings identify aggregate beneficial ownership of 9,904,856 shares and name his three nominees as Marc Maurer, Laura Gentile and Eric Hirshberg, while he later urged prospective CEO candidates in a March 12 open letter to scrutinize board fitness. (stocktitan.net) (newswire.ca) The board has moved in parallel: lululemon appointed former Levi Strauss CEO Chip Bergh to the board effective March 17 as part of “ongoing board refreshment,” and the company said it will file a definitive proxy statement and related materials ahead of the 2026 annual meeting. (corporate.lululemon.com 1) (corporate.lululemon.com 2) Management gave fiscal‑2026 guidance implying modest growth and margin pressure—full‑year revenue guidance of $11.35 billion–$11.50 billion (2%–4% growth) and EPS guidance of $12.10–$12.30—while warning operating margin will compress relative to FY25. (fool.com)
