Shape up

8 June 2016 By Jennifer Saba Follow @jennifersaba

Chip Wilson wants to make the $9 bln athletic-clothes maker’s board more accountable for profit slipping as revenue expands. That has left Lululemon lagging rival Under Armour. Sweating out costs would boost performance. Wilson’s robust stake makes him a formidable taskmaster.

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Lululemon Athletica on June 8 reported first-quarter net income of $45.3 million, down from $47.8 million during the same period last year. Revenue grew 17 percent year-over-year to $495 million.

The athletic-apparel company’s founder and former Chairman and Chief Executive Chip Wilson wants all board directors to be elected annually, rather than in the current staggered manner. In a letter to shareholders on June 1 he wrote that Lululemon had “lost its way” to competitors like Under Armour. Wilson said he holds 14.2 percent of the company’s shares.

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