The Vancouver‑based athleisure retailer has taken its long‑running dispute with founder Chip Wilson to the next level, issuing a formal letter to shareholders that outlines its strategy, names its incoming chief executive, and lists its preferred board nominees. The communication, sent ahead of the company’s annual meeting on June 25, urges investors to back the board’s slate of directors over Wilson’s three challengers.

Wilson, who owns nearly nine percent of the company, has been a vocal critic of Lululemon’s direction for years, arguing that the firm has “deprioritized creative excellence at the altar of efficiency.” In response, the company’s letter characterises his proposals as “misguided” and claims his nominees lack the experience needed to steer a public company. It argues that accepting Wilson’s slate would weaken board expertise in areas such as governance, finance and retail operations.

The dispute has intensified after last year’s proxy fight, during which Wilson attempted to regains influence by putting forward a slate that includes former ESPN chief marketing officer Laura Gentile, former Activision CEO Eric Hirshberg and former On co‑CEO Marc Maurer. Lululemon counters that none of the challengers have prior public‑company board experience, and that Maurer still holds a sizeable stake in his former competitor, On.

Central to Lululemon’s case is the appointment of Heidi O’Neill as the next CEO, a move announced last month. O’Neill has spent almost three decades at Nike, where she led the company’s women’s apparel line and drove significant digital commerce growth. The letter highlights her blend of creative vision and operational discipline as essential for the retailer’s turnaround.

The company’s management notes that its performance has suffered in recent quarters due in part to tariff pressures, a sluggish U.S. consumer market, and rising competition from brands like Vuori and Alo Yoga. They argue that a stable board, led by the proposed nominees – former Levi Strauss CEO Chip Bergh, former Unilever marketing chief Esi Eggleston Bracey and former Gap finance executive Teri List – will restore confidence and enable a strategic reset.

Wilson’s side has sought a larger board presence and a brand‑product advisory council, but settlement talks collapsed after the company rejected his demands for a replacement right and full reimbursement of his campaign costs.

The upcoming vote will decide whether shareholders side with Lululemon’s current leadership or give the founder a chance to re‑enter the boardroom. The outcome could shape the retailer’s trajectory as it seeks to regain momentum in a cooling athleisure market.