Chip Wilson, the founder of Lululemon Athletica Inc., recently expressed his frustration regarding the company’s latest product blunder, labeling it a “total operational failure.” He attributed this misstep to the direction provided by the company’s board of directors.
“This is a new low for Lululemon,” Wilson commented in a candid LinkedIn post. “Persistent failures like this arise from this Board’s lack of experience in creative industries, insufficient enthusiasm for product development and quality, along with a troubling focus on short-term, self-serving priorities.”
Wilson’s remarks add additional scrutiny on the company following the failed launch of its “Get Low” leggings. These leggings faced backlash due to their transparency, prompting Lululemon to halt online sales just days post-launch, while continuing in-store availability.
On Tuesday, Lululemon announced that it had ceased e-commerce sales to better address certain initial guest feedback and to assist with product education. The company expects to resume online sales in the near future.
As of Wednesday, Lululemon had not provided an immediate response to inquiries.
This incident marks yet another challenge for the beleaguered retailer as it seeks to rejuvenate sales and win back its customer base. Roughly 18 months ago, Lululemon withdrew its Breezethrough line shortly after its release, following complaints about unflattering fits.
This latest error also resembles a 2013 situation where Lululemon was forced to recall numerous black yoga pants after customers raised concerns regarding the transparency of the brand’s signature leggings.
Wilson, a key shareholder, has been advocating for significant changes within the company he established in 1998, particularly calling for a reevaluation of the board.
Recently, Lululemon announced CEO Calvin McDonald would step down at the end of January, with the board now actively searching for his successor.
Meanwhile, activist investor Elliott Investment Management has acquired more than $1 billion in shares of Lululemon. They have been collaborating for months with retail executive Jane Nielsen, a former CFO and COO at Ralph Lauren, to reassess Lululemon’s direction.
