Lululemon CEO Search Could Stall Amid Founder Chip Wilson’s Proxy Contest, Says Stifel

Stifel analysts noted that Wilson’s proposal for a change in the company’s board could modernize Lululemon’s corporate governance.

• Stifel analysts maintained their ‘Hold’ rating on the stock with a price target of $210, implying a downside of over 1% from the closing price on December 29.
• This comes weeks after Calvin McDonald announced his resignation as the company’s CEO, effective January 31.
• However, Lululemon does not have a clear CEO succession plan in place, as Wilson noted in his announcement.

Lululemon Athletica Inc. (LULU) founder Chip Wilson’s proxy contest to overhaul the board of directors of the apparel maker could delay the company’s search for a new CEO.

According to TheFly, Stifel analysts maintained their ‘Hold’ rating on the stock with a price target of $210, implying a downside of over 1% from the closing price on December 29.

Lululemon shares were up 0.4% in Tuesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Wilson’s Bid For Change

Stifel analysts noted that Wilson’s proposal for a change in the company’s board could modernize Lululemon’s corporate governance.

“I know this campaign for change cannot be about me. It is about recommitting Lululemon to genuine creative leadership that will re-establish a brand of enduring strength,” said Wilson.

This comes weeks after Calvin McDonald announced his resignation as the company’s CEO, effective January 31. However, Lululemon does not have a clear CEO succession plan in place, as Wilson noted in his announcement.

He said that shareholders have no confidence that the existing board can select and support the next CEO without onboarding members with stronger product experience.

Wilson And Lululemon

Wilson is one of the largest independent shareholders of the company, with a 4.27% stake as of December 2025, according to LSEG data as cited by Reuters. He has been openly critical of the company and its board.

Last month, following the leadership change announcement, Wilson said that he knows there are several qualified CEO candidates who can succeed McDonald and that he hopes Lululemon’s board will continue its dialogue with him to find new directors.

Following Wilson’s comments, Lululemon said that it had asked the founder to share the names of his nominees for directors. However, the company said Wilson declined to engage further.

LULU stock is down 44% year-to-date and 45% over the past 12 months.

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