Lululemon Calls Truce With Founder Chip Wilson After Stock Collapse, Leggings Quality Implosion
Consumer
Lululemon has settled its proxy fight with founder Chip Wilson, adding two new board members (Laura Gentile and Marc Maurer) in a cooperation agreement. The truce removes a governance overhang but doesn't solve the underlying problems: market share erosion, quality-control failures, and a stock down ~50% from highs — the bounce may be a sell-the-news setup.
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↓ SHORT-10% target+5% stop2-4 weeks
Fade the LULU relief rally — proxy truce removes noise but not the core rot; short into $138-140 resistance with fundamentals still deteriorating.