▶ Full Post Text
Lululemon Was This Close to a Peace Deal With Its Founder—and Then It All Blew Up
**By Teresa Rivas**
**May 24, 2026 2:00 am EDT**
**https://www.barrons.com/articles/lululemon-athletica-stock-price-board-4d96da7a**
Key Points
\- Lululemon’s stock has fallen nearly 60% in the past 12 months amid various issues.
\- Founder Chip Wilson’s board changes were rejected by Lululemon, which called his views ‘outdated’ and ‘damaging’.
\- Analysts cite ‘incoherent designs’ and ‘lower quality fabric’ as key product issues, leading to declining consumer interest and spending.
Like a middle-aged yoga practitioner who has failed to stretch before attempting a tricky pose,[Lululemon](https://www.barrons.com/market-data/stocks/lulu?mod=article_chiclet) Athletica feels stuck. The longer it stays that way, the harder it will be to win back investor trust.
The stock is down some 39% since the start of 2026 alone and has lost nearly 60% of its value in the past 12 months; it’s lost some three-quarters of its value from its postpandemic late 2023 high of more than $500.
The stock’s decline is down to a number of issues—lackluster [financial results and forecasts](https://www.barrons.com/articles/lululemon-earnings-stock-price-61b17cad?mod=article_inline), see-through leggings [scandals](https://www.marketwatch.com/story/lululemons-struggles-mount-now-with-backlash-against-a-new-line-of-see-through-pants-3ad839b4?adobe_mc=MCMID%3D87946690878175480642744270693058204667%7CMCORGID%3DCB68E4BA55144CAA0A4C98A5%2540AdobeOrg%7CTS%3D1779662382&_gl=1*1crdp6m*_gcl_au*MTcxMzEyNTgyNC4xNzc5NjYyMDU4*_ga*MTkyMDMxODQ4MS4xNzc5NjYyMDU4*_ga_K2H7B9JRSS*czE3Nzk2NjIwNTgkbzEkZzEkdDE3Nzk2NjIxNDIkajYwJGwxJGgyMTQzODM5NzA4), and worries that products contain toxic [chemicals](https://www.barrons.com/articles/lululemon-texas-probe-potential-toxic-chemicals-stock-9c40eca4?mod=article_inline), to name a few. The company previously told *Barron’s* that its products don’t contain PFAS, the acronym for a group of synthetic “forever chemicals” linked to health risks.
However the latest twist came this week when the proxy battle between Lululemon and founder Chip Wilson became more acrimonious.
Recall that at the end of 2025, Wilson launched a[proxy battle](https://www.barrons.com/articles/lululemon-stock-founder-proxy-battle-73dd5ae9?mod=article_inline), arguing that the board and the company’s strategy needed substantial changes as the stock struggled. At that time, Lululemon said it had engaged “extensively and in good faith” with Wilson. But last Tuesday, the company [published](https://www.barrons.com/press-release/correcting-and-replacing-lululemon-highlights-strength-of-its-refreshed-board-with-the-right-expertise-to-drive-the-company-s-next-phase-of-growth-and-enhanced-shareholder-value-5fb189b0)a letter—the first major pushback against Wilson—in which it urged shareholders to reject his nominees to the board of directors.
The letter came after a [breakdown](https://www.reuters.com/business/lululemon-says-talks-with-founder-collapsed-over-escalating-demands-2026-05-18/) in talks between the two sides, and Lululemon’s board said Wilson has “outdated perspectives” about the company’s future.
“His actions have been damaging to the brand and harming the very stakeholders he claims to represent: shareholders, guests, and employees,” the board said. “Electing any of Mr. Wilson’s nominees would endorse his misguided perspectives, significantly downgrade the Board’s skills and expertise, and jeopardize the ability of the leadership team and our incoming CEO to effectively build on and accelerate Lululemon’s ongoing action plan at a critical time for the business.”
Wilson didn’t return requests for comment.
The stakes are higher for management as incoming chief executive officer and former [Nike](https://www.barrons.com/market-data/stocks/nke?mod=article_chiclet) alum Heidi O’Neill garnered a [mixed reaction](https://www.barrons.com/articles/lululemon-stock-price-ceo-nike-49faa002?mod=article_inline) from analysts. The stock has fallen more than 20% since her appointment was announced in late April. She is slated to start Sept. 8.
That said, analysts appear more focused on the merchandising than the battle at the top.
“Our consistent channel checks continue to show one thing: product remains the problem, and it has only gotten worse,” wrote Jefferies analyst Randal Konik wrote after the shareholder letter’s release last week. He warns that “incoherent designs” and “lower quality fabric” are causing consumers to lose interest in the brand.
“These issues are now showing up in the data,” with consumers’ intent to purchase falling in March, and worsening in April, after declines that were already recorded in 2025.
Whether through O’Neill or Wilson’s board nominees, it’s clear that Lululemon needs a fresh approach, and the longer it takes to get there, the longer the stock will stay mired in its downtrend.
KeyBanc Capital Markets analyst Ashley Owens noted last week that data from the firm’s two million credit and debit card users showed spending at the athleisure brand was down in the first quarter—below her expectations—and further decelerated from the fourth quarter’s decline.
The numbers signal that lackluster spending could continue in the second quarter.
“While the data typically runs below actual results, the weakness appears to have extended into May thus far and points to a potentially longer recovery timeline as turnaround efforts struggle to take hold,” she writes.
That means whoever is at the top has a difficult road ahead.