Lululemon founder Chip Wilson: Board of directors is real issue at the company

Core Viewpoint - The decline of Lululemon is attributed to a series of mistakes, likened to a plane crash, as stated by the company's founder Chip Wilson, who emphasizes the role of the board of directors in the company's challenges [1][3][12]. Company Performance - Lululemon shares have decreased by over 60% from their peak in 2023, although they have risen since Chip Wilson left the board in 2015 [1]. - Chip Wilson still holds approximately 12% of the outstanding shares, indicating a significant stake in the company [1]. Management and Governance Issues - The current issues are not solely due to management or external factors but are primarily linked to the board of directors' inability to hire the right management [3][12]. - The board's focus on short-term metrics and quarterly numbers has led to a lack of innovation and creativity within the company [4][5]. Recommendations for Change - Chip Wilson suggests that effective governance and a strong board of directors are crucial for long-term success, advocating for either a restructuring of the board or taking the company private to facilitate necessary changes [8][15]. - He believes that the trajectory of the company's strategy and stock price can be positively influenced by addressing these governance issues [11][12]. Potential Actions - There is a possibility of collaboration with activist investors to replace board members and alter the company's strategic direction [9][10]. - Discussions with potential board candidates are ongoing, indicating a proactive approach to addressing governance challenges [13].