Lululemon has officially resolved its high-profile dispute with founder Chip Wilson, bringing an end to a months-long proxy contest that had cast uncertainty over the athletic apparel giant’s leadership. Under the terms of the settlement, the company will appoint two of Wilson’s preferred candidates to its board of directors: former On co-CEO Marc Maurer and former ESPN Chief Marketing Officer Laura Gentile. Additionally, the company has committed to adding a third director with specialized expertise in apparel branding and product development by October.

In exchange for these board seats, Wilson has agreed to a standstill provision, pledging to refrain from public criticism of the company for the next 18 months. Rather than seeking reimbursement for his proxy campaign expenses, Wilson and the company agreed that Lululemon will instead make a charitable donation to support athletics and landscaping at Kitsilano Beach in Vancouver, the site where the brand was originally established. This resolution marks a significant de-escalation after weeks of public sparring, during which the company had previously accused Wilson of harboring outdated perspectives that could threaten its strategic turnaround.

The settlement arrives at a critical juncture for Lululemon, which has faced mounting pressure from cooling demand in the athleisure market and increased competition from emerging brands like Alo Yoga and Vuori. With the proxy battle now behind it, the company aims to refocus on its core product strategy and address slowing growth in the Americas. Lululemon’s leadership expressed optimism that the new board members will provide the necessary oversight to help the company navigate current economic headwinds, including tariff costs and shifting consumer sentiment, as it works to restore shareholder value.