Lululemon has appointed former Levi Strauss & Co. CEO Chip Bergh to its board, as the athleisure retailer grapples with slowing growth in North America and continues its search for a permanent chief executive.
The move follows the retirement of long-time director David Mussafer and comes amid mounting pressure from founder Chip Wilson, who has been openly critical of the company’s leadership and governance.
Lululemon reported broadly flat fourth-quarter sales year over year, or up 6% excluding the extra week in the prior year. Comparable sales rose 3% in the quarter, while full-year revenue increased 5% with comps up 2%.
Performance was notably weaker in North America, where revenue fell 4% in Q4 and declined 1% for the full year, marking the first annual drop in the region. Comparable sales in the market also slipped by low single digits.
Bergh’s appointment was viewed by analysts as a concession to Wilson’s demands for change at board level. However, Wilson described the move as “underwhelming,” arguing that Bergh’s previous companies had underperformed peers and criticising the board for not consulting him on the decision.
Wilson has been campaigning for broader governance changes since the departure of former CEO Calvin McDonald, including pushing for new board nominees and stronger creative leadership.
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Interim co-CEO and CFO Meghan Frank said the company is continuing its CEO search and engaging with “highly qualified candidates,” while also taking steps to stabilise performance.
The retailer is focusing on improving merchandising, reducing markdowns and returning to full-price selling, alongside streamlining its assortment and rebalancing inventory in North America. Early signs of improvement are emerging, with the company expecting stronger full-price sales trends into the second quarter.
Lululemon is also refining its product strategy, with an emphasis on design quality, faster innovation cycles and a more curated assortment. Updates include fewer logos, tighter colour palettes and a more focused accessories offering.
The company is also evolving its physical store strategy, rolling out a new format that emphasises localisation and activity-based merchandising, grouping products by categories such as running, training and yoga.
A redesigned flagship in SoHo is serving as the model for future updates across North America.
Despite current challenges, Lululemon expects overall revenue to grow between 2% and 4% in 2026 as it works to regain momentum in its core market while continuing to expand internationally.
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