Lululemon Sheds Half Its Value as Disgruntled Founder Slams CEO

For a brand built on yoga, LululemonLULU

is radiating pure chaos. The athleisure pioneer’s stock has cratered 51% this year, torching ~$25B in market value as consumer spending slows and rivals steal what’s left. Now, estranged founder Chip Wilson is waging a public war against his old company, likening its blunders to a “plane crash.”

• On the affordable frontier, Adanola quadrupled sales with leggings at half Lululemon’s price — forcing the latter to discount 1.2K items while 90% sold at full price just three years ago.
• Otherwise, premium upstarts Alo Yoga and Vuori are siphoning trendsetters with matching sets and relaxed silhouettes — trends Lululemon arrived late to, while quality issues plagued releases.

Boardroom brawl: Wilson’s $1.8B stake has taken a beating, and he’s making it everyone’s problem. The founder is torching CEO Calvin McDonald with full-page WSJ ads that blame “finance-focused CEOs” for killing the brand’s cool. They can’t even agree on who to design for as McDonald targets 35% new styles by spring. New creative director Jonathan Cheung’s designs drop then too, but whether that reignites the brand or confirms Wilson’s worst fears remains to be seen. So much for namaste.