Lululemon announced a board overhaul as part of a truce with founder Chip Wilson, its largest active shareholder. The Canadian apparel maker will add two of Wilson’s nominees—former ESPN CMO Laura Gentile and former On Holding co‑CEO Marc Maurer—at the June annual meeting. Their expertise aims to sharpen brand positioning.

Wilson, who holds an 8.7 per cent stake, had criticised Lululemon’s performance since leaving the board in 2015 and filed three rival director nominations last December. Under the agreement, he will pause activism for 18 months and sign a disparagement clause. Lululemon also commits to appoint a director with brand expertise by October and to donate to a Vancouver community project. The agreement also includes a governance review.

The settlement sparked a near 3 % rise in pre‑market trading, but the stock remains down almost 60 % over the past year amid fierce competition and waning consumer spend. Analysts view the board changes as a step toward restoring the brand’s product‑first vision and unlocking shareholder value, while the donor pledge aims to soothe local stakeholders for long‑term growth and community goodwill.