Dive Brief:
- Lululemon has officially appointed Laura Gentile and Marc Maurer to its board of directors, according to a June 24 filing with the Securities and Exchange Commission.
- The two new members joined following the annual stockholders’ meeting on Thursday, expanding the board from nine to 11 people. Gentile will serve as a Class I director and Maurer will serve as a Class III director, according to the filing.
- The company agreed to add Maurer and Gentile to the board as part of a cooperation agreement with its founder Chip Wilson in May.
Dive Insight:
Lululemon’s board is following through on its deal with founder Wilson, ultimately quelling the proxy feud that brewed over the last several months.
As part of the agreement, former ESPN chief marketer Gentile and former On co-CEO Maurer join the board, but Wilson also agrees to a “customary standstill, non-disparagement, voting, and related provisions for approximately 18 months until 30 days prior to the nomination deadline for the 2028 annual meeting,” the company said in a press release in May.
Leading up to the agreement, Wilson and Lululemon were engaged in a back-and-forth disagreement over management of the company. Just prior to announcing their settlement, Lululemon implored shareholders to support its board nominees during its annual meeting rather than the three members Wilson proposed. The company also touted its “refreshed board” and reaffirmed its choice to hire former Nike exec Heidi O’Neill as its new CEO.
Meanwhile, Lululemon has been focused on turning around sales trends for its namesake brand. The company’s Q1 net revenue rose 4% year over year to $2.5 billion. That growth was driven primarily by its international business, which saw a 22% net revenue jump. In the Americas, however, its net revenue dipped by 3% from a year earlier.
Looking ahead, Lululemon forecasts continued revenue declines. The company expects its Q2 revenue to dip between 2% and 3% year over year, landing between roughly $2.45 billion and $2.48 billion.
