Core Viewpoint - Lululemon Athletica is facing a proxy battle initiated by its founder Chip Wilson, who aims to revamp the board amid declining sales and a search for a new CEO [1][3]. Group 1: Board and Leadership Changes - Chip Wilson, holding a 9% stake, is nominating three new directors to assist in the CEO search following Calvin McDonald's announcement of his resignation effective January [2]. - Wilson criticized the current board for lacking oversight and a clear succession plan, expressing doubts about their ability to select a new CEO without stronger product experience [3]. - Activist investor Elliott Investment Management, with a $1 billion stake, is also advocating for leadership change, proposing Jane Nielson as a candidate for the CEO position [3]. Group 2: Company Performance and Market Position - Lululemon has struggled with its brand image, losing its "cool" factor and making several fashion missteps, including introducing bright colors that did not resonate with consumers [4][7]. - The company has discounted more merchandise this year than ever before in its 27-year history, indicating significant challenges in maintaining market share against competitors like Alo Yoga and Vuori [7]. - Following the news of Wilson's proxy fight, Lululemon's shares rose by approximately 1%, and earlier in the month, the stock increased by 10% to $208 after McDonald's resignation [8].

Core Viewpoint - Lululemon Athletica's CEO Calvin McDonald announced his resignation amid declining sales in North America, prompting a potential proxy battle initiated by the company's founder, Chip Wilson [1][11]. Group 1: Leadership Changes - CEO Calvin McDonald will step down on January 31 and will serve as an advisor until March [1][5]. - The board of directors is beginning the search for McDonald's successor, indicating a consensus that a leadership change is necessary [2]. Group 2: Financial Performance - Lululemon's total sales increased by 7% to $2.6 billion for the quarter ending November 2, driven by growth in China and other international markets, despite a 2% decline in North American sales [4]. - The company faced challenges with its merchandising mix in North America, which did not align with its future brand vision [6]. Group 3: Criticism and Accountability - Chip Wilson criticized the board for failing to hold management accountable for product innovation and described the company's approach as complacent [3][13]. - Analysts have pointed out that under McDonald's leadership, Lululemon lost its direction, alienating loyal customers due to inconsistent design and expansion into non-core categories [7]. Group 4: Future Outlook - Wilson, a significant shareholder, is advocating for new independent directors to oversee the CEO search and has expressed concerns about the board's ability to plan for the future effectively [13][14].

Following criticism from fans regarding the change to its popular "Old Timer" logo, Cracker Barrel is now facing heat from investors and even a competing executive, who is responsible for a billboard reading "Fire the CEO." The purchaser of the billboard in Nashville, Tennessee, is the CEO of Steak 'n Shake, Sardar Biglari, the fast food chain confirmed on Thursday, Sept. 18, in a social media post. Biglari, who is a longtime investor in Cracker Barrel and owns nearly 3% of the company's shares, is leadi ...