lululemon creates technical athletic clothes for yoga, working out, running, and most other sweaty pursuits.
In 2005, Advent International (partnered with Highland Capital Partners), a U.S. private equity firm, bought a 48% minority interest in Lululemon for a reported C$225 million, and former Reebok chief executive officer Robert Meers became the new Lululemon CEO. Wilson, the founder, now has 42% ownership, with retail staff owning 10% in stocks and shares. The company formed a partnership with Descente to oversee Lululemon’s Japanese operations; however, in mid-2008, Lululemon closed its Japanese operations (three stores) to focus on the North American market. Christine Day, a former Co-President of Starbucks International, became chief executive officer of Lululemon in December 2010. On June 10, 2013, it was stated Day would leave her position, and she is expected to be replaced by Laurent Potdevin in January 2014.
Lululemon Athletica announced an initial public offering in May 2007 and became a public company on July 27, 2007. Chip Wilson rang the opening bell on the NASDAQ exchange in the United States that day.
The Retail Council of Canada recognized the company as the 2003 Innovative Retailer of the Year in its small store classification.
In December 2010, Lululemon announced a recall of some of the store’s reusable bags that were given since the Vancouver Olympics in February 2010. The special bags recalled were made in China from polypropylene, a common material used in reusable bags distributed by retailers. The concerns by Lululemon were due to reports that similar bags have been found to contain high levels of lead.
In a statement released on December 10, 2013, Wilson announced his resignation as chairman of Lululemon, and that president of TOMS Shoes, Laurent Potdevin, would become CEO.
The senior management at Lululemon consists of a board of directors – chaired by founder and former CEO Dennis “Chip” Wilson, in addition to CEO Christine Day (former President of Starbucks Asia), a Chief Financial Officer, two Executive Vice Presidents, and several Independent Directors. Day announced her departure as CEO in June 2013 after one of the company’s core products, black Luon yoga pants, were pulled due to the sheerness and quality of the pants. The company is currently searching for a replacement. Lululemon’s senior management consists of non-executive directors, executives who do not serve as directors, and executive officers who also serve as directors. The board of trustees believes one of its most important functions is to protect stockholder’s interests via independent oversight of management. The key role for Lululemon’s senior management is to continue growing the company by expanding further into the United States.
