Professional Documents
Culture Documents
As many of you know, I founded lululemon and remain its largest shareholder with almost
14.2% of the companys shares. I asked the Board to allow me 10 minutes to address my fellow
shareholders at this years annual general meeting. They denied me that opportunity. Had I
been given the opportunity, this is what I would have said:
I love lululemon and its employees and remain its biggest believer and supporter. No one is
more aligned and focused on shareholder value creation. I am confident that with the right
management, Board stewardship and capable execution, lululemon can return to greatness and
all shareholders will see exponential returns.
Unfortunately, lululemon has lost its way and I believe a call to action is needed. I feel strongly
that our current Board and management team must clearly articulate and execute a strategy
with urgency towards regaining lululemons competitive advantage and profitable growth and
they must take responsibility.
Lululemon created the global athleisure market (which I refer to as streetnic --stretch,
technical, street -- market) and seeded a revolution in the way we all dress. But we are just at
the beginning. We cannot continue to cede the market opportunity we created to Under
Armour and Nike. The Companys greatest opportunities are ahead.
Under Armour has taken our leadership role, and the market recognizes this with a premium
valuation. Under Armour trades at double our EBITDA and P/E multiples. If lululemon were
rewarded with the same multiple as Under Armours, our stock would be almost 90% or
approximately $8 billion higher today, or another $60 higher per share.
IN CLOSING