Lululemon Stock Turmoil: Founder Blames CEO as Brand Identity Crisis Sparks Investor Frenzy
Lululemon spent more than a decade as one of the world’s fastest-growing retail success stories. The brand built an empire on premium activewear and an image that blended athletic discipline with lifestyle aspiration.
Recently, however, that narrative has shifted sharply. Slowing sales, margin pressure and rising competition have created turbulence that has spilled into boardrooms, investor calls and headlines. Now, founder Chip Wilson has added further fuel by publicly blaming CEO Calvin McDonald for what he calls a collapse of the company’s core identity.
Investor Panic Builds as Sales Slow
The immediate driver behind the renewed scrutiny is Lululemon’s weakening US performance. In its most recent quarter, comparable sales in the Americas fell by 4%, a trend that stood out after years of uninterrupted growth. According to The Motley Fool, the slowdown comes as consumers pull back on discretionary spending while athleisure becomes more crowded with newer, trendier rivals.
That shift has magnified concerns about Lululemon’s margins. New tariffs and higher import costs tightened profitability, pushing the company’s gross margin down by 110 basis points. These pressures have left analysts anxious about how much more strain the brand can absorb without further denting demand.
Chip Wilson Blames Leadership for ‘Loss of Cool’
Founder Chip Wilson has never been shy about critiquing Lululemon’s direction, but his latest comments have struck a deeper chord among investors. He has accused McDonald of steering the brand away from innovation and into what he describes as a corporate, Wall Street-driven mindset. In an interview reported by The Wall Street Journal, Wilson argued that the company’s leadership has allowed competitors like Alo Yoga and Vuori to outshine Lululemon at a cultural level.