TORONTO, June 23 Shares of Lululemon Athletica
Inc rose on Monday after reports that founder Dennis
"Chip" Wilson was considering options and pushing for changes at
the yogawear retailer following an extended share slump.
Lululemon's typically volatile stock rose 3 percent to
$41.45 but remained below its close on June 11, just before the
company cut financial forecasts and warned that second-quarter
sales were off to a weak start.
Wilson is building a team of advisers that will likely
include Goldman Sachs, a source familiar with the
situation told Reuters on Sunday. The Wall Street Journal said
Wilson could launch a proxy fight or team up with a private
equity firm in a buyout.
The source told Reuters that Wilson is looking at all
options but has not determined his course of action, adding that
Wilson's decision is unlikely for at least another couple weeks.
Vancouver-based Lululemon's reputation for selling
top-quality, trendy yoga and running clothes was tarnished last
year when it recalled stretchy pants because they were partially
It has been working to smooth out quality issues, battle
lawsuits, deal with departing executives and soothe customers
after Wilson said in an interview that "some women's bodies just
actually don't work" for Lulu's pants.
Wilson, who has a 27 percent stake in Lululemon, lashed out
at the retailer's board ahead of its annual meeting on June 11,
saying its new chairman and another director were too focused on
A Lululemon spokeswoman said on Sunday that the board and
management team are "relentlessly innovating to drive global
expansion and create value for Lululemon shareholders."
(Reporting by Allison Martell; Editing by Nick Zieminski)