BUSINESS

Chip Wilson Sells His Stake In Lululemon, Shares Fall

06/11/2015 10:58 EDT | Updated 06/11/2015 11:59 EDT
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NEW YORK -- Lululemon founder Dennis (Chip) Wilson is selling his family's remaining stake in the yoga gear retailer a year after pushing for board changes.

Wilson is selling about 20.1 million shares at $60.95 apiece, which constitutes his remaining 14 per cent stake in the company, according to a Securities and Exchange Commission filing on Thursday.

Lululemon shares were trading at around $65.20 on the NASDAQ Thursday morning, down more than 2 per cent after news broke of Wilson's stock sale.

The move comes months after he made a truce with the company he created by also selling 20.1 million shares as part of a deal to avoid a messy battle.

He resigned as chairman in December 2013 and in June 2014 announced that he was voting against the re-election of two returning directors, including his replacement, chairman Michael Casey, and private equity executive RoAnn Costin.

At the time, Wilson argued that he didn't think the two members aligned with the company's "core values of product and innovation.''

Wilson started Lululemon in 1998 in Vancouver after taking a yoga class and helped turn it into an international brand, with more than 250 stores.

The stock sale comes on the heels of a positive quarterly report for the company. The Vancouver-based company more than doubled its fiscal first-quarter profit on a boost in clothing sales. Lululemon also raised its outlook for full-year profit and revenue.

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