• by Sarah Mahoney , March 18, 2026

Lululemon, in the midst of recruiting its next CEO is back in proxy-battle headlines. After announcing fourth-quarter sales and profits that topped expectations, the company also said it had added Chip Bergh, the former CEO of Levi Strauss & Co., to its board.

That move–along with the company's weak forecast for the coming year–evoked another blast of criticism from Chip Wilson, the disgruntled founder of the company, who still owns about 9% of its stock. In a statement, he called Bergh's appointment "underwhelming," reiterating his position that more substantive changes are needed. "Bergh's resume from the companies he has led and on whose boards he has served have struggled for years against their peers."

Wilson welcomed Lululemon's news that David Mussafer, who has been on the board 14 years, would not seek reelection, but added that "significant change is still needed at the Board level before a new CEO can be selected."

For the fourth quarter, Lululemon's revenues rose 1% to $3.6 billion, while full-year revenue rose 5% to $11.1 billion. The company continues to generate double-digit growth internationally, but sales in the Americas sank again, falling 4%.

More concerning to observers, however, was the forecast, proof that a return to sunny days is still a way off. For the first quarter, the Vancouver-based company projects net revenue to rise between 1% and 3%, to $2.4 billion to $2.43 billion. And for the full year, it expects a gain of between 2% and 4%.

In his statement, Wilson says those results prove more drastic change is required, pointing out that this is the eighth consecutive quarter of sales declining in the Americas. "While yesterday's announcement is a step in the right direction,” he noted, “glaring governance deficiencies remain."

Last month, Lululemon disputed Wilson's characterization of the board nomination process. "It is unfortunate that Mr. Wilson has been unwilling to have a constructive dialogue toward a reasonable resolution," the company said. 

While Wilson's role as agitator is not likely to make it any easier for Lululemon to find its next chief, some observers aren't so worried and think the company's brand strength and innovation skills will see it through.

"Lululemon is at a critical juncture after subpar results from competition, tariffs, and product issues led Calvin McDonald to resign as CEO," writes David Swartz, an analyst who follows Lululemon for Morningstar. The company continues to clear out older merchandise and is "pursuing more marketing and innovation that focus on technical apparel. We think this focus will appeal to its core customers and make the brand more competitive."

The persistent weakness in the Americas is concerning, and Swartz estimates that sales there won't return to mid-single-digit growth until 2028.

But he notes that international strengths are compensating. China Mainland sales in the fourth quarter grew 24%, compared to Morningstar's 13% forecast, with consumers excited by market-specific products and marketing events. His view is that Lululemon can generate double-digit percentage sales growth in the region over the long term.

In ten years, Morningstar forecasts half of Lululemon's annual sales will come from outside North America — a prospect that may matter more to investors right now than anything Chip Wilson has to say.