Lululemon founder Chip Wilson publicly criticized the company's board for failing its succession planning. The criticism follows the announcement that CEO Calvin McDonald will step down, effective January 31, 2026.
Wilson, who remains a large shareholder, expressed deep concern over the leadership transition. He urged the board to appoint new independent directors specifically to guide the search for a new CEO.
This leadership development occurred after Lululemon reported better-than-expected third-quarter earnings. The company also announced a $1 billion increase to its existing stock repurchase program.
In response to the planned CEO departure and the founder’s engagement, Lululemon’s stock saw a significant positive reaction. The shares gained over 10%, as some investors welcomed the potential for a strategic reset.