Dennis “Chip” Wilson, who retains an 8% ownership stake in Lululemon, on December 29 filed a notice nominating three independent directors—former On Holding co-CEO Marc Maurer, former ESPN CMO Laura Gentile and former Activision CEO Eric Hirshberg—to stand for election at the 2026 annual meeting. Wilson criticized the current board for a “tremendous failure” to plan succession and restore the brand’s creative edge, and argued in his filing that shareholders “have no faith” in the existing governance team to arrest recent underperformance.

Shortly after the CEO departure announcement, activist fund Elliot Investment Management disclosed a stake exceeding $1 billion and publicly endorsed former Ralph Lauren executive Jane Nielsen for the top job. Elliot’s pressure campaign is separate from Wilson’s board push, but both efforts target the same outcome: more decisive leadership. Elliot has not yet formally nominated directors but is expected to leverage its position on key governance votes in 2025.

CEO Calvin McDonald, who has led Lululemon since 2018, will leave at the end of January 2026 without a named successor. The board has appointed CFO Meghan Frank and CCO André Maestrini as interim co-CEOs while conducting a search. Wilson described the absence of a clear successor as evidence of poor planning, and investors view overlapping founder and activist campaigns as likely to prolong the selection process.

Lululemon’s shares are down roughly 58% from their all-time high, reflecting stalled growth in its core U.S. market. Comparable sales in the Americas fell 5% in Q3, and the company’s vertically integrated retail model—long praised by Wilson for its high margins—faces increased competition and product fatigue. With a market capitalization near $25 billion and gross margin north of 58%, the company still generates strong cash flow, but investors are demanding a sharper product strategy and renewed brand momentum.