Chip Wilson alleged on Wednesday that the company has “completely lost its way” as a technical apparel leader and that it has failed to deliver products that “work.”
- Earlier this week, it was reported that Lululemon has removed the ‘Get Low’ collection from its website following customer complaints about their sheerness merely days after debut.
- The founder pinned the blame for the pullback on the company board in a post on LinkedIn.
- Wilson launched the latest proxy fight against Lululemon’s board in late December.
Lululemon Athletica Inc. (LULU) founder Chip Wilson on Wednesday slammed the company’s recent pullback on its ‘Get Low’ product line as a “new low” for the company, while also pinning the blame on the company’s board of directors.
“Pulling back the “Get Low” product line after three days is clearly a total operational failure,” Wilson said in a post on LinkedIn. He highlighted that the company’s previous Breezethrough leggings launch had similar product flaws, subsequently leading to recall in mid-2024.
‘Get Low’ Removal
Earlier this week, Bloomberg reported that Lululemon has removed the ‘Get Low’ collection from its website following customer complaints about their sheerness merely days after debut.
“...we have temporarily paused sales online in the market to better understand some initial guest feedback and support with product education,” a company spokesperson reportedly told Bloomberg. “We expect to bring the collection back to our North America e-commerce channels soon and the collection continues to be available in other markets.”
Wilson Blames Board
Wilson alleged on Wednesday that Lululemon has “completely lost its way” as a technical apparel leader and that it has failed to deliver products that “work.” The founder further pinned the blame on the company’s board, with whom he is currently waging an activist campaign.
“It is clear that persistent failures like this are born out of this Board’s lack of experience in creative businesses, disinterest in product development and quality, and focus on short-term, self-interested priorities. How could anyone reach a conclusion other than the Board continues to make decisions that are destroying the brand and the stock price?” Wilson wrote.
Earlier this week, Semafor reported that Wilson, also the company's second-biggest shareholder, is trying to remove private equity firm Advent from the company’s board as part of a proxy fight launched late last year. Wilson is not looking for a board seat for himself but wants two legacy Advent-linked directors to resign, Semafor reported, citing people familiar with the matter.
Wilson launched the latest proxy fight in late December by nominating three independent directors to the company's board.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around LULU stock stayed within the ‘bullish’ territory over the past 24 hours, while message volume stayed at ‘normal’ levels.
LULU stock fell 49% over the past 12 months.
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