Lululemon Athletica (LULU) shares closed trading on Friday, September 4, at $100.61, down 17.38% for the session. This is approximately 80% lower than the peak of $511.29 reached in December 2023. The company's founder, Chip Wilson, is in the process of getting divorced.
In 2026, Lululemon has lowered its sales forecast three times: from $11.35 billion announced in March to $10.35 billion now. Revenue in the second quarter decreased by 4% to $2.4 billion, and comparable sales fell by 9%. Earnings of $2.92 per share included a one-time refund of $134.5 million in import duties. After falling to an eight-year low on September 4, the shares have not recovered, and the company expects a further 10-11% decline in sales in the third quarter.
Chip Wilson and related parties own 9.9 million shares, which constitutes 8.7% of the company. At the close of trading on Friday, this stake was valued at just under $1 billion. About 1.1 million shares are already attributed to Shannon "Summer" Wilson. There is no prenuptial agreement. Under British Columbia law, assets owned by each spouse before marriage are protected, and the increase in their value during the marriage is shared equally. Lululemon went public in 2007, five years after the couple's wedding.
In May, Wilson completed a campaign to change the board of directors, agreeing to two seats on the board and an 18-month truce. The new CEO, Heidi O’Neill, starts this week. She inherits declining sales and a shrinking North American business, while the founder's voting stake is now involved in a closed court proceeding.