Founder says Lululemon is missing out
03/06/2016
Mr Wilson pointed to the 8% drop in share price since December 2013, when the current management team arrived, as indication that the company is failing to take advantage of the “greatest change in the way people have dressed in the history of the world”. He compared this to the respective 79% and 45% increases in share price of Under Armour and Nike during the same period.
“As a long-term investor in Lululemon, I am uncomfortable with the lack of urgency, stewardship and performance of our great company. I have not heard a strategy nor seen actions that lead me to believe we will regain our competitive position and secure long-term returns,” added Mr Wilson, who retains a 14.2% stake in the company.
Lululemon broke the $2 billion revenue barrier in 2015, a 15% increase in the previous year’s figure. It marked a recovery from a difficult period for the company which saw financial results affected by the recall of controversial yoga pants made from a luon fabric that was found to be too sheer. Christine Day, CEO of the company at the time, resigned in the wake of the controversy and profits were impacted by the cost of the recalled inventory.
Mr Wilson founded Lululemon in 1998 but left the board in February 2015 after disagreements with fellow directors.
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